March 8th, 2017 / Insight posted in MKS Comments

Spring Budget 2017: Reduction in dividend allowance

“The Chancellor says the proposed reduction in the tax free dividend allowance from £5,000 to £2,000 would provide a disincentive to small businesses to incorporate,” says Graham Morgan, a tax partner with Kingston Smith. “In many cases the decision to incorporate is commercially driven, with the tax advantage being a secondary feature. The reduction will cost up to £1,143 for each individual so is unlikely to change the behaviour of entrepreneurs.”