Receiving Dividends? Watch for the taxman!
The Summer Budget on 8 July introduced new rules for the taxation of dividends (see here for our initial reaction) and this will affect you adversely if you receive more than £5,000 of dividends each tax year.
Even if the new rules do not increase your tax liability, it will change the way in which you pay that tax liability as you will no longer get an automatic 10% tax credit on the dividends; you may well have to physically pay tax over.
The trigger point for paying (even) more tax is a dividend portfolio of around £150,000 and we at robinson+co will be contacting clients individually about this matter but in the meantime if you have any queries, please contact Victoria Bishop, our Tax Partner, on firstname.lastname@example.org.