Stuart Ellen, Managing Director for Registration Services at Equiniti, explores the impact of these changes in an article published on Quoted Companies Alliance.
Dividend tax changes 201626 February 2016
Individuals will no longer pay tax on first £5,000 of dividend income. Our corporate guide to managing the change
As announced in the 2015 Summer Budget, legislation is being introduced in the 2016 Finance Bill which will result in some significant changes to the dividend income taxation. From 6 April 2016, the Dividend Tax Credit will be replaced by a new tax-free Dividend Allowance and new rates of income tax on dividends. These changes come into force and have an impact on: shareholders, employees and the established system of dividend tax credits.