There’s No Single Right Answer
We provided a reminder recently about the forthcoming change to dividend taxation.
The new Dividend Allowance is likely to make a difference to many small business owners. How big that difference is and whether it is positive or negative is highly dependent on your specific circumstances.
It is already clear that the new rules provide some flexibility.
- There are opportunities to transfer shareholdings to spouses and civil partners for instance.
- Higher rate tax payers with children aged 16 or over can use discretionary trusts to offset some of the tax liability.
For many small business owners the key to minimising total tax liability lies in the way that the Dividend Allowance affects other areas of the tax and benefits system, particularly if you receive Tax Credits or Child Benefit payments, or have other dividend income.
They best advice that Lewis Smith & Co. can give you at the moment is “Let’s talk”.
Why not book a short appointment with us to discuss your circumstances. We’ll be able to tell you very quickly whether more detailed tax planning is required.
Call 01384 235549 or email email@example.com today.
Lewis Smith & Co. – Accountants for Midlands manufacturers.