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Will your income be cut by the new dividend tax?

The government claims this means ordinary investors with smaller portfolios and modest dividend income will see no change in their tax liability. According to its sums, when combined with the increases the government has made to the personal allowance and the introduction of the Personal Savings Allowance, from April 2016 individuals will be able to receive up to £17,000 of income per annum tax-free. 

Clearly that is the Governments spin on what could happen but for the majority of people over here the income they get comes from savings, investments or a pension.  So here’s the rub, the new rules will cut an additional £2.5billion out of investor’s income through tax.

At the moment basic-rate tax payers are not required to pay tax on dividends. 

But under the new rules that will change. From April 2016 all taxpayers will have a new tax-free dividend allowance of £5,000 a year. After this tax is to be charged at new rates that are 7.5 per cent higher than current levels. The overall tax rate will depend on your income tax rate band.   

If you are affected in some way by the changes outlined above, or have any questions regarding how to make the most of your money, it is well worth sparing some time to see a Financial Adviser.

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Tax Benefits of the Non-Habitual Resident Status

Over the past few years’ Portugal has developed a reputation as the new tax haven for affluent and high net worth individuals, all of whom wish to achieve tax optimization by relocating to a friendly, discreet and safe EU country. With Portuguese residency they are able to acquire a special tax regime, with many attractive […]

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Details of new pension transfers course released

Any person with either a personal or professional interest in pension transfers in Grand Cayman will be interested to learn that the UK’s Chartered Insurance Institute (CII) has announced details of a new pension transfers qualification that is designed to enhance the knowledge of those providing pension transfers advice.

The new level 4 Certificate in Pension Transfers is comprised of four compulsory units, including a new advanced level 6 unit called “(AF7) Pension transfers”, as well as the following three CII level 4 units:

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