In this video, Morgan Reach’s Mandeep Ubhi discusses the upcoming dividends reform and how that tax may affect you.
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For more information on dividends reform, contact Morgan Reach at their Birmingham or London offices.
Full Transcript of Tax on Dividends video:
Hi guys it’s Manny. I’m one of the directors of Morgan Reach Chartered Accountants. Today I want to talk to you about one the Dividends Reform that has happened in the recent budget announcement.
Basically, what comes into force from April next year (April 2016) is the Tax on Dividends. Now previously there was a tax credit, which you would get on your dividends – that has been abolished. That’s being replaced with the new £5,000 tax-free allowance.
Now, if you went more than £5,000 in dividends, then there are various taxes that will come into force. As a basic rate taxpayer, you will pay 7.5%. As a higher rate taxpayer, you’ll pay 32.5%. If you’re an additional rate tax-payer, you’ll pay just over 38%.
But, if you want to find out how this affects you, please feel free to go onto our website: www.morganreach.com