Category Archives: Dividend

HMRC update guidance on Managed Service Companies

May 16th, 2018

HMRC have updated their guidance, following the recent decision in Christianuyi Ltd v R & C Commrs [2018] UKUT 10 (TCC), in which the Upper Tribunal ruled that a number of companies were operating as managed service companies (MSCs). In this case, the Upper Tribunal upheld the decision of the First-tier Tribunal that the appellant […]


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Salary v Dividend

March 11th, 2017

The questions surrounding the issue of how best to extract profits from a company in a tax-efficient manner remain as popular as ever. Despite the abolition of the non-repayable tax credit, the introduction of the dividend allowance, and the personal savings allowance, extraction by as remuneration and by way of dividend remain the two most […]


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Dividend Allowance

September 5th, 2016

Legislation included in Finance Bill 2016 implements the new 0% rate for dividend income, as well as changing the rates of tax for dividend income. Once enacted, the changes will apply from 6 April 2016. Broadly, the new nil rate applies to the first £5,000 of a person’s dividend income and is available annually. From […]


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OTS examines potential for new trading vehicle

June 9th, 2016

The Office of Tax Simplification (OTS) recently published a series of recommendations following its simplification review of small company taxation (see OTS recommends simplifications for small companies, April 2016 newsletter). The review focused on incorporated businesses with fewer than 10 employees, known as ‘micro’ businesses, of which there are now some 4.1 million in the […]


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Practical implications of the dividend tax allowance

March 3rd, 2016

The new rules governing the taxation of dividends are set to take effect in relation to dividends received after 5 April 2016. The changes include: – a £5,000 dividend nil rate (also known as the ‘dividend tax allowance’ (DTA)), which will effectively tax at the nil rate, the first £5,000 of taxable dividend income (i.e. […]


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Dividend Allowance

December 14th, 2015

The government announced at the summer 2015 Budget, that a new dividend allowance of £5,000 will be introduced from 6 April 2016. Broadly, from that date, it is expected that the existing dividend tax credit will be abolished, a new annual dividend tax allowance of £5,000 will be introduced, and the rates of tax on […]


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