{"id":1356,"date":"2016-07-04T15:32:00","date_gmt":"2016-07-04T14:32:00","guid":{"rendered":"https:\/\/smh.group\/?p=1356"},"modified":"2023-02-15T13:53:21","modified_gmt":"2023-02-15T13:53:21","slug":"upcoming-changes-to-the-taxation-of-dividend-income-2","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/","title":{"rendered":"Upcoming Changes To The Taxation Of Dividend Income"},"content":{"rendered":"<p>With effect from 6th April 2016 the rules surrounding the taxation of dividend income are changing. The result of these changes will mean in most cases additional income tax being due.<\/p>\n<p>We will see the introduction of a new \u00a35,000 \u2018Dividend Allowance\u2019 and the abolition of the notional 10% tax credit on dividends received.\u00a0 The dividend allowance will effectively mean the first \u00a35,000 of dividend received is tax free with dividend income above this taxed at the new rates of;<\/p>\n<p>7.5% for dividend income received within the basic rate band (\u00a35,000-\u00a332,000)<\/p>\n<p>32.5% for dividend income received within the higher rate band (\u00a332,001 &#8211; \u00a3150,000)<\/p>\n<p>38.1% for dividend income received within the additional rate band (Over \u00a3150,000)<\/p>\n<p>The table below provides an indication of how the tax will vary. It assumes your only other income will be an annual salary of \u00a38000;<\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"210\">Annual Dividend Income<\/td>\n<td width=\"88\">\u2018Old\u2019 Tax Paid<\/td>\n<td width=\"80\">\u2018New\u2019 Tax Paid<\/td>\n<td width=\"72\">Increase<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a35,000<\/td>\n<td width=\"88\">NIL<\/td>\n<td width=\"80\">NIL<\/td>\n<td width=\"72\">&#8211;<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a310,000<\/td>\n<td width=\"88\">NIL<\/td>\n<td width=\"80\">\u00a3150<\/td>\n<td width=\"72\">\u00a3150<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a330,000<\/td>\n<td width=\"88\">NIL<\/td>\n<td width=\"80\">\u00a31,650<\/td>\n<td width=\"72\">\u00a31,650<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a350,000<\/td>\n<td width=\"88\">\u00a34,763<\/td>\n<td width=\"80\">\u00a37,650<\/td>\n<td width=\"72\">\u00a32,887<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a380,000<\/td>\n<td width=\"88\">\u00a312,263<\/td>\n<td width=\"80\">\u00a317,400<\/td>\n<td width=\"72\">\u00a35,137<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a3100,000<\/td>\n<td width=\"88\">\u00a320,804<\/td>\n<td width=\"80\">\u00a323,900<\/td>\n<td width=\"72\">\u00a33,096*<\/td>\n<\/tr>\n<tr>\n<td width=\"210\">\u00a3120,000<\/td>\n<td width=\"88\">\u00a326,248<\/td>\n<td width=\"80\">\u00a334,225<\/td>\n<td width=\"72\">\u00a37,977<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>*Grossing up of the net dividend under the \u2018old\u2019 rules results in the personal allowance being lost in full.\u00a0 Under the \u2018new\u2019 rules this wouldn\u2019t be the case.<\/p>\n<p>The changes highlighted above affect the personal tax year ending 5<sup>th<\/sup> April 2017 and any additional tax will become payable on 31<sup>st<\/sup> January 2018.<\/p>\n<p>Whilst this information is designed to alert you to these changes it may not be tailored to your specific circumstances.\u00a0 If you would like to discuss how these changes could affect you please contact James Hartley on 0114 266 4432 or <a href=\"mailto:jhartley@smh.group\">jhartley@smh.group<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With effect from 6th April 2016 the rules surrounding the taxation of dividend income are changing. The result of these changes will mean in most cases additional income tax being due. We will see the introduction of a new \u00a35,000 \u2018Dividend Allowance\u2019 and the abolition of the notional 10% tax credit on dividends received.\u00a0 The dividend allowance will effectively mean the first \u00a35,000 of dividend received is tax free with dividend income above this taxed at the new rates of; 7.5% for dividend income received within the basic rate band (\u00a35,000-\u00a332,000) 32.5% for dividend income received within the higher rate band (\u00a332,001 &#8211; \u00a3150,000) 38.1% for dividend income received within the additional rate band (Over \u00a3150,000) The table below provides an indication of how the tax will vary. It assumes your only other income will be an annual salary of \u00a38000; &nbsp; Annual Dividend Income \u2018Old\u2019 Tax Paid \u2018New\u2019 Tax Paid Increase \u00a35,000 NIL NIL &#8211; \u00a310,000 NIL \u00a3150 \u00a3150 \u00a330,000 NIL \u00a31,650 \u00a31,650 \u00a350,000 \u00a34,763 \u00a37,650 \u00a32,887 \u00a380,000 \u00a312,263 \u00a317,400 \u00a35,137 \u00a3100,000 \u00a320,804 \u00a323,900 \u00a33,096* \u00a3120,000 \u00a326,248 \u00a334,225 \u00a37,977 *Grossing up of the net dividend under the \u2018old\u2019 rules results in the personal allowance being lost in full.\u00a0 Under [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1356","post","type-post","status-publish","format-standard","hentry","category-chartered-tax-advisers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Upcoming Changes To The Taxation Of Dividend Income - SMH Group<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Upcoming Changes To The Taxation Of Dividend Income - SMH Group\" \/>\n<meta property=\"og:description\" content=\"With effect from 6th April 2016 the rules surrounding the taxation of dividend income are changing. The result of these changes will mean in most cases additional income tax being due. We will see the introduction of a new \u00a35,000 \u2018Dividend Allowance\u2019 and the abolition of the notional 10% tax credit on dividends received.\u00a0 The dividend allowance will effectively mean the first \u00a35,000 of dividend received is tax free with dividend income above this taxed at the new rates of; 7.5% for dividend income received within the basic rate band (\u00a35,000-\u00a332,000) 32.5% for dividend income received within the higher rate band (\u00a332,001 &#8211; \u00a3150,000) 38.1% for dividend income received within the additional rate band (Over \u00a3150,000) The table below provides an indication of how the tax will vary. It assumes your only other income will be an annual salary of \u00a38000; &nbsp; Annual Dividend Income \u2018Old\u2019 Tax Paid \u2018New\u2019 Tax Paid Increase \u00a35,000 NIL NIL &#8211; \u00a310,000 NIL \u00a3150 \u00a3150 \u00a330,000 NIL \u00a31,650 \u00a31,650 \u00a350,000 \u00a34,763 \u00a37,650 \u00a32,887 \u00a380,000 \u00a312,263 \u00a317,400 \u00a35,137 \u00a3100,000 \u00a320,804 \u00a323,900 \u00a33,096* \u00a3120,000 \u00a326,248 \u00a334,225 \u00a37,977 *Grossing up of the net dividend under the \u2018old\u2019 rules results in the personal allowance being lost in full.\u00a0 Under [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2016-07-04T14:32:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-15T13:53:21+00:00\" \/>\n<meta name=\"author\" content=\"Brendan Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/\"},\"author\":{\"name\":\"Brendan Hall\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"headline\":\"Upcoming Changes To The Taxation Of Dividend Income\",\"datePublished\":\"2016-07-04T14:32:00+00:00\",\"dateModified\":\"2023-02-15T13:53:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/\"},\"wordCount\":250,\"articleSection\":[\"SMH Chartered Tax Advisers\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/\",\"name\":\"Upcoming Changes To The Taxation Of Dividend Income - 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The result of these changes will mean in most cases additional income tax being due. We will see the introduction of a new \u00a35,000 \u2018Dividend Allowance\u2019 and the abolition of the notional 10% tax credit on dividends received.\u00a0 The dividend allowance will effectively mean the first \u00a35,000 of dividend received is tax free with dividend income above this taxed at the new rates of; 7.5% for dividend income received within the basic rate band (\u00a35,000-\u00a332,000) 32.5% for dividend income received within the higher rate band (\u00a332,001 &#8211; \u00a3150,000) 38.1% for dividend income received within the additional rate band (Over \u00a3150,000) The table below provides an indication of how the tax will vary. It assumes your only other income will be an annual salary of \u00a38000; &nbsp; Annual Dividend Income \u2018Old\u2019 Tax Paid \u2018New\u2019 Tax Paid Increase \u00a35,000 NIL NIL &#8211; \u00a310,000 NIL \u00a3150 \u00a3150 \u00a330,000 NIL \u00a31,650 \u00a31,650 \u00a350,000 \u00a34,763 \u00a37,650 \u00a32,887 \u00a380,000 \u00a312,263 \u00a317,400 \u00a35,137 \u00a3100,000 \u00a320,804 \u00a323,900 \u00a33,096* \u00a3120,000 \u00a326,248 \u00a334,225 \u00a37,977 *Grossing up of the net dividend under the \u2018old\u2019 rules results in the personal allowance being lost in full.\u00a0 Under [&hellip;]","og_url":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/","og_site_name":"SMH Group","article_published_time":"2016-07-04T14:32:00+00:00","article_modified_time":"2023-02-15T13:53:21+00:00","author":"Brendan Hall","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Hall","Estimated reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/#article","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/"},"author":{"name":"Brendan Hall","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"headline":"Upcoming Changes To The Taxation Of Dividend Income","datePublished":"2016-07-04T14:32:00+00:00","dateModified":"2023-02-15T13:53:21+00:00","mainEntityOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/"},"wordCount":250,"articleSection":["SMH Chartered Tax Advisers"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/","url":"https:\/\/devstagesite.co.uk\/smhgroup\/upcoming-changes-to-the-taxation-of-dividend-income-2\/","name":"Upcoming Changes To The Taxation Of Dividend Income - 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