Dividend tax change shelved (for now)

[TheCyclingProgrammer]

https://www.ft.com/content/b53a5ba6-...b-5528796fe35c

The reduction of the tax free amount to £2k didn't make it into the finance bill.

Assuming the Tories win the election (which seems an almost certainty) I'm sure this will come back up again in the Autumn budget. I'm assuming this will still give them enough time to bring it in time for the 18/19 tax year, won't it?

[d000hg]

I wonder why not. I can't see those affected by it have anyone else to vote for and it risks giving Labour another attack point since this is probably something most people would have been in favour of.

Maybe they're going to properly overhaul the system rather than keep hacking it about once they get a proper majority?

[AtW]

I'm assuming this will still give them enough time to bring it in time for the 18/19 tax year, won't it?

Yes, plenty, I reckon they will keep the allowance but increase dividend tax rate again, this will result in heavier tax take.

[jamesbrown]

This is a simple procedural move. A lot of things didn't make it through due to lack of time for scrutiny. Yes, this will almost certainly return. It may not be exactly the same following Taylor (it won't be more favourable ), although Taylor may be delayed too. There's also the slight possibility of a summer budget.

[d000hg]

Yes, plenty, I reckon they will keep the allowance but increase dividend tax rate again, this will result in heavier tax take.

They've set out their stall for desiring parity between non-employed* and employed workers so I don't see increasing dividend taxes is in line with that, unless they can break dividends on investments and dividends from your own company into separate treatments.



*I don't know a better catch-all term than encompasses PSCs and self-employed, is there one?

[AtW]

They've set out their stall for desiring parity between non-employed* and employed workers so I don't see increasing dividend taxes is in line with that, unless they can break dividends on investments and dividends from your own company into separate treatments.

They will increase tax on all dividends because they can and there is nobody to stop them.

[d000hg]

By that logic they'll increase income tax too. They will only increase tax if there's something they want to spend it on... unlike your home government MPs don't get to nick the tax money except when it comes to expenses

[barrydidit]

By that logic they'll increase income tax too. They will only increase tax if there's something they want to spend it on... unlike your home government MPs don't get to nick the tax money except when it comes to expenses

There's a never ending list of tulip the public wants money for. Even if you confiscated all private wealth and sold all national assets to the Chinese, there still wouldn't be enough money.

[AtW]

By that logic they'll increase income tax too.

Income tax levels are too politically sensitive, so they can't do it, but as for dividends, who is getting then anyway? Dirty spekulants