Tag Archives: tax; dividend

How will the reduction in the dividend allowance affect me?

From 6 April 2018 the dividend allowance was reduced to £2,000 from £5,000. The result this will have on your tax bill depends on where the £5,000 allowance falls in your personal tax computation. If the allowance previously fell within your basic rate band then you will have an additional £3,000 (£5,000 – £2,000) charged…