Are Dividend Investors in Jeremy Hunt's Sights?4 Nov 2022 17:12
Government floating the idea of dividend tax rises and a reduction in allowances ahead of the November 17 autumn statement.
The UK chancellor Jeremy Hunt is looking at raising taxes on the sale of assets such as shares and property as he weighs up "difficult decisions" to address a £50 billion black hole in the public finances.
He is also considering an increase in dividend tax, in a move that would come as a blow to entrepreneurs and investors. The new chancellor has already reversed possible cuts to dividend tax set out during the Kwarteng mini-Budget.
A source close to Hunt confirmed the tax hikes were under consideration, but said no decisions had yet been taken – as we are still two weeks away from the highly anticipated (and delayed) autumn statement on November 17.
Dividends – Where We Are Now.
Rather than being cut from the next tax year, dividend tax rates are for the time being staying the same at 8.75%, 33.75% and 39.35% for basic, higher and additional rate taxpayers. These were supposed to be cut under proposals outlined by Kwasi Kwarteng in his September 23 mini-Budget and since reversed by Hunt. Most investors can generally shield dividends with their ISA limits, so again this change is likely to impact higher net worth individuals. People also have a £2,000 dividend allowance every year – and this could be cut to £1,000 under Treasury plans or got rid of entirely.
https://www.morningstar.co.uk/uk/news/228047/are-dividend-investors-in-jeremy-hunts-sights.aspx?
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