Posted on March 28, 2018

From 6 April 2018 there are significant changes to the tax free Dividend Allowances. Currently the tax free Dividend allowance is £5,000 in the 18/19 tax year, ie from 6 April 18 this will be reduced to £2,000.

There are also changes in the tax rate band from 6 April 18. Your personal allowance is rising to £11,850 (up from £11,500). The basic rate tax band now applies to income up to £46,350. Higher tax rate from £46,351 to £150,000 and additional tax rate over £150,000.

As always we will be advising our clients on the most tax efficient way to extract funds from their companies for 18/19 tax year.