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Clarke & Son Blog

Small Businesses Hit by Reduction in Tax-Free Dividend Allowance

Will Anderson, Company Commercial Partner

– In the budget yesterday, it was announced that Directors with small businesses who pay themselves in dividends alongside a salary will have their tax-free dividend allowance cut.  If you own a business, we can help with any financial matter such as these.

Director shareholders will see a tax break reduced on the dividends they receive.

The tax-free dividend allowance – which only came into force a year ago – will be reduced from £5,000 to £2,000 from April 2018.

That will affect those who own a small business and pay themselves in dividends alongside a small salary.

It will also hit people with large portfolios of shares.

Experts say that with an Isa allowance of £20,000 available to use from April, many investors will not need to worry.

Source: BBC News – http://bbc.in/2m2lj3H

 

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