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Budget: Govt in major review of dividend taxation


Dividend tax credits will be replaced by a £5,000 tax-free allowance in proposals announced by Chancellor George Osborne in the Summer Budget.

Osborne described the current dividend tax system as “complex and archaic.”

The rates of dividend tax will be set at 7.5 per cent, 32.5 per cent and 38.1 per cent.

Those earning over £140,000 will pay more, while 85 per cent of taxpayers will see no change or be better off, while over one million people will be better off, Osborne claims.

Dividends from pensions and Isas will remain tax-free.



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Pensions pocket picked again

In this life, one thing countsIn the bank, large amountsI’m afraid these don’t grow on trees,You’ve got to pick-a-pocket or twoYou’ve got to pick-a-pocket or two, boys,You’ve got to pick-a-pocket or two. Sung by Fagin in the musical Oliver. “I have got to pick a pocket or two, boys” might be just what the chancellor, […]


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There are 2 comments at the moment, we would lover to hear your opinion too.

  1. its not dividends “from” pensions and ISA’s its dividends “received by”

  2. anyone seen the levels for when 7.5% kick in, etc?

    are they saying, Mr & mrs take 30k each out of limited co and currently don’t pay any tax if brt, but under new rule, this will be 30K at 7.5% or the higher?

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