George Osborne will be delivering his Autumn Statement to Parliament on Wednesday 25 November. The Autumn Statement is usually a significant event in the calendar and this year is unlikely to be any different, especially as it is being combined with a spending review.
There are rumours that the Chancellor could use this week’s Autumn Statement to accelerate the planned tax increases on dividends that are currently set to be introduced in April 2016. There are some significant practical problems with accelerating his plans mid tax year, but this may not hold him back in his mission to cut the UK’s deficit.
We would advise anyone who is considering taking dividends this tax year to take action now, rather than waiting until closer to 5 April as might usually be the plan. Doing so shouldn’t accelerate any tax payments and it may save you money if the Chancellor does decide to surprise us by accelerating the dividend tax changes.
If you want to take your dividends now then you should vote the dividends before Wednesday and ensure that you sign the relevant documentation to reflect this. Dividends don’t have to be paid out immediately in cash, they can be credited to loan accounts and subsequently drawn down, but again it’s important that they are credited to the loan account before Wednesday.
If you think you may be in this situation and are wondering what your next steps are, please get in touch with our tax team on 01254 679131 or email firstname.lastname@example.org.
We will have full commentary of all the announcements and how they affect individuals and businesses on our website on Thursday 26 November.