Budget 2017 - Further tax hike for shareholders

Philip Eagle

Tax Director

The much heralded attack on the self-employed and one man companies is likely to have a wider impact on all shareholders, it was announced in Wednesday’s Budget.

Increases in the rates of NIC payable by the self-employed were announced as 1% in April 18 and 1% in April 19 although the House of Commons may change this.

From April this year, the rate of tax payable upon dividends has increased by 7.5% across all tax bands. As an example, the tax payable by a higher rate taxpayer will increase from 25% to 32.5%. To partially compensate for this increase a dividend allowance of £5,000 was also introduced.

From April 2018, the dividend allowance will be reduced to £2,000 which will increase the tax burden for the typical small business shareholder by £225. HMRC’s estimates suggest that this change will bring in a further £900m of tax each year.

Read more about this and other announcements in our Budget Report.

For further support

Please contact us on 0161 476 8276 or email to talk through how the budget will impact on you.


The information contained herein is of a general nature and is not intended to be received as formal professional advice. Whilst we endeavour to provide accurate information, there can be no guarantee that the information is accurate as of the date it is received, or that it will continue to be accurate in the future, due to legislative changes. It is therefore important that before you act upon any information contained herein you seek appropriate professional advice to take account of your exact circumstances.

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