Dividend tax changes afoot

The end of the financial tax year is fast approaching and there are tax changes afoot.

From April, business owners who pay themselves in the form of dividends, rather than a salary, will see their tax-free allowance cut from £5,000 to £2,000.

The tax changes will also affect investors who have portfolios of shares held outside Isas or pensions.

Alan Mellor, Managing Director of Phillip Bates & Co Financial Services, commented: “This impending change will impact shareholders and business owners who are ultimately going to be paying more tax.

“Whilst there is not a lot we can do to combat the [tax] changes, we invite clients to contact us and see what their options are.”

Alan Mellor can be contacted on 0151 353 1066.