o Dividends that form part of the basic rate band – 8.75% (7.5% 2021-22)
o Dividends that form part of the higher rate band – 33.75% (32.5% 2021-22)
o Dividends that form part of the additional rate band – 39.35% (38.1% 2021-22)
For most director/shareholders of smaller companies who have adopted the high dividend low salary approach to remuneration, will pay more tax as a result, but this should not affect the overall strategy.
If you are concerned by any aspects of the recent Budget, please call.