Chancellor Hunt mulls dividends tax hit to fill £50bn fiscal hole

Several measures being considered

Valeria Martinez
clock • 1 min read

Chancellor Jeremy Hunt is considering cutting the tax-free allowance for dividend income and raising the dividend taxation rate in the Autumn Budget on 17 November, in an effort to fill the £50bn black hole on the UK’s public finances.

A Bloomberg report, which cited two people with knowledge of the matter, revealed that Hunt was looking at cutting the amount shareholders can earn in dividends before they begin paying tax from the current level of £2,000. Raising the dividend taxation rate under options being modelled by the Treasury's would result in a 1.25% point increase across all three of the UK's tax brackets, which are now 8.75% for the basic rate, 33.75% for the higher rate, and 39.35% for the additional rate, the FT reported. Chancellor Jeremy Hunt rips up Kwasi Kwarteng's Mini Budget The reports come as...

To continue reading this article...

Join International Investment

Join International Investment today

Unlock members-only benefits:

  • Unlimited access to real-time news, industry insights, video features and market intelligence
  • Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
  • Members-only access to the Editor’s weekly news roundup newsletter
  • Members-only access to analysis via our exclusive industry polls
  • Be the first to hear about our events and awards programmes

Join now


Already a International Investment member?