Dividend Allowance from 6th April 2018

The chancellor Philip Hammond announced a decrease of the tax free dividend allowance, from £5,000 to £2,000  effective from 6th April onwards.

When the dividend allowance was first announced a couple of years ago (as a way of fending off complaints about the extra 7.5% dividend tax), those in the know new that this would later decrease, or even disappear at the whim of the government. Well, that didn’t take very long at all!