The new income tax rates and allowances came into effect as usual on 6 April, the start of the 2018/19 tax year.
Many tax allowances have increased:
– the personal allowance has risen from £11,500 to £11,850
– the capital gains tax annual exempt amount is now £11,700 – up from £11,300 in 2017/18.
However, the dividend allowance has been reduced to £2,000, from £5,000, and this will especially hit director-shareholders who draw most of their remuneration as dividends.
For any advice please contact us.