Are personal taxes on dividends going up?

[east_of_the_sun]

According to the Times yesterday tax will be 10% higher from next April - have I missed something? Admit I didn't pay enough attention to the budget etc....

http://www.timesonline.co.uk/tol/mon...fset=12&page=2

2. RUSH TO PAY YOURSELF A DIVIDEND
Shareholders in their own businesses can take money as dividends, taxed at 32.5% until April 5, rising to 42.5% next April. The business must be profitable.

[sweetandsour]

According to the Times yesterday tax will be 10% higher from next April - have I missed something? Admit I didn't pay enough attention to the budget etc....

http://www.timesonline.co.uk/tol/mon...fset=12&page=2

2. RUSH TO PAY YOURSELF A DIVIDEND
Shareholders in their own businesses can take money as dividends, taxed at 32.5% until April 5, rising to 42.5% next April. The business must be profitable.

I think the whole article is just for people earning over £150,000 who will be subject to that higher rate.

I wish I was on that sort of money, but .....

[prozak]

Not read it all but I think it is talking about the new 50% tax.

SO if you are paying enough dividends to exceed 150k then yes you should probably consider paying as much as you can this year.

Edit:

Oops probably relates to over 100k also due to removal of tax free threshold....

[east_of_the_sun]

Thanks, that makes sense - as it didn't specify a threshold above which this would apply I assumed all dividends over the basic rate allowance