Tax on dividend income – more increases on the way?
26 November 2021, Companies, Creative Industries, General
After an increase of 1.25% in the Finance (No. 2) Bill can we expect a further increase in the tax on dividend income?
MPs call for possible increased tax on dividends
The following MPs have proposed an amendment to the Finance (No. 2) Bill
- Keir Starmer
- Rachel Reeves
- Bridget Phillipson
- James Murray
- Abena Oppong-Asare
- Sir Alan Campbell
To move the following Clause
Review of the impact on revenues from tax on dividend income
The Chancellor of the Exchequer must, within six months of the passing of this Act, publish an assessment of the impact on revenues from tax on dividend income of increasing the rates set out in section 8 of ITA 2007 by
(a) 1.25%,
(b) 2.5%, and
(c) 3.75%.
What does this mean for me?
You can take your own view on whether there will be a further 2.5% increase to tax on dividends. The fact that further increases are being proposed mean that you should consider your options for taking dividends before 6th April 2022. See my previous article on the Health and Social Care Levy – Finance (No. 2) Bill for ideas on getting ahead of the tax increase.
