close menu

March Budget Statement preview: Dividend tax reforms

by Scott Brown | Mar 15, 2016
  • On Wednesday, amidst a climate of lower than expected local and global growth, George Osborne will present the March Budget Statement. The chancellor is expected to announce some unpopular decisions regarding grants and taxes. In addition to this, changes in the way dividends are taxed will come into force on 6 April.

    Dividend tax reforms

    These reforms were outlined in the 2015 Summer Budget and will come into force on 6 April. The 10% tax credit has been replaced with a £5,000 tax free allowance. Tax bands are set at 7.5% for basic rate, 32.5% for higher rate and 38.1% for additional rate tax payers from next year.

    Possible capital gains tax reforms

    There may or not be changes to Capital Gains Tax, but opinion on this is varied and no clear confirmation has been forthcoming from Number 11 Downing Street. 

    General expectations for the March Budget Speech

    The Chancellor has been loath to be dragged into specifics as to where he will find the £4 billion needed to get the government’s books to balance by 2020. It is clear, however, that a change in the dividend tax and/or Capital Gains Tax systems will not be enough to get Britain’s finances into surplus territory in the next four years.

    In interviews over the last week, Osborne has stated that “we need to act now so we don't pay later”. Many are interpreting this to be a warning of some significant cuts to social grants, particularly grants for the disabled. 

    Pundits are also expecting tax loopholes for the wealthy to be closed, with TV stars rumoured to be a particular target of HMRC. While these kinds of predictions are not uncommon come Budget Statement time, the importance Treasury is putting on getting the books into surplus territory by 2020 may just cause drastic action to be taken.

    If you have any questions regarding the dividend tax laws, email our accounting team or call us on +44 (0) 20 7759 7553.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Man cutting coin with table saw
      10 cost saving ideas for your small business
      Nov 20, 2019  |  by Scott Brown
    • Confused businessman
      Hiring your first employee for your UK business? This is how much it costs
      Oct 31, 2019  |  by Scott Brown
    • business plan
      Step-by-step guide to writing a business plan [template included]
      Aug 29, 2019  |  by Scott Brown
    • female-entrepreneur hot air balloon
      Why we need more women-owned businesses
      Jul 16, 2019  |  by Scott Brown
    • crowdfunding lightbulb
      7 ways to finance your small business
      Jul 16, 2019  |  by Scott Brown
    • Businessman looking to the future
      How to get your business ready for the future
      Jun 19, 2019  |  by Scott Brown
    • Guide to UK PAYE tax forms
      A guide to UK PAYE tax forms P45, P60 and P11D
      Jun 14, 2019  |  by Kobus Van den Bergh
    • Cut-taxes
      The 2019/20 tax year changes: What they mean for you
      Jun 10, 2019  |  by Scott Brown
    • confused
      Do you need to complete a Self Assessment tax return?
      May 29, 2019  |  by Kobus Van den Bergh
    • Tax refund money
      11 excellent ways to spend your UK tax refund
      Apr 09, 2019  |  by Kobus Van den Bergh

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120


    25 Richefond Circle
    Umhlanga 4320 +27 (0) 31 536 8844

    United Kingdom


    One Croydon
    12-16 Addiscombe Road
    Croydon CR0 0XT +44 (0) 20 7759 7514



    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services Licence issued by ASIC to deal in foreign exchange (1st Contact Group - AFS Licence number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.