Divvie tax calculation update

[WordIsBond]

So it's even worse than people were LEAD TO BELIEVE when Osborne made the speech?

Not really. There weren't enough specifics in the speech to lead anyone to believe anything (except that he'd obviously targeted us). No one knew, after the speech, how it related to the personal allowance -- there was some concern that it might overlap the PA rather than come on top of it. That would have been far worse than what we are now being told.

This is not quite the best that could have been hoped after the speech, but the difference is not really that much, and it is far better than the worst that was feared.

Edit: Actually, that's probably not fair. Because my spouse is a shareholder, we can easily take out all we need without hitting higher rate band. The fact that it isn't an allowance is a real hit for those who need to take out dividends into the higher rate band.

But I'm not sure anyone was "led to believe" that they'd be able to extend the basic rate band by £5K.

[jamesbrown]

But I'm not sure anyone was "led to believe" that they'd be able to extend the basic rate band by £5K.

They weren't really, but I think a lot of people (myself included) assumed it would operate in a similar way to the annual CGT allowance, but also cautioned that this could be wrong.