UK budget business unfriendly

UK budget business unfriendly

Britain’s finance minster, Chancellor of the Excehquer Philip Hammond, has announced a number of changes in the Spring Statement on March 8 that will have a significant impact on investors.

In once example, the tax-free dividend allowance will fall from £5,000 to £2,000 a year from April 2018, with Mr Hammond arguing that the greatest beneficiaries of the perk are either director-shareholders or wealthy savers with share portfolios worth more than £50,000.

Les Cameron of Prudential, the insurer, said the previous dividend allowance of £5,000 allowed investors to hold around £150,000 in share-based portfolios tax-free. The cut in the allowance will reduce that figure to £60,000.

Paul Haywood-Schiefer of Blick Rothenberg, the accountancy firm, said: “The dividend allowance cut from £5,000 to £2,000 will cost basic-rate taxpayers £225, higher-rate taxpayers £975 and additional-rate taxpayers £1,143.” SOURCES: Include Daily Telegraph, BBC, the Guardian

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