A solicitor gives legal advice to a smiling young couple

Spring budget 2017: IHT, dividend tax allowance, and social care

Carol Cummins, Consultant in our private client team, examines some of the key points from the spring budget 2017.

Reduction in dividend tax allowance from £5000 per year to £2000 per year from April 2018

“This will mean older people who rely on dividend income to supplement their pensions may face an extra tax demand, and could mean more of them having to submit tax returns. In addition, the introduction of the dividend tax allowance has increased the work involved in the administration of many trusts and estates.”

Inheritance tax residence nil rate band (as previously announced)

“To be phased in from next month – although this will reduce the inheritance tax burden for many, it will also introduce another layer of complexity into individuals’ wills and their estate planning.”

Additional funding for social care system

“This is very welcome and will go some way to dealing with the demographic challenges which faces this sector in the coming years.”

For more information about how the changes announced in the spring budget could affect you, your family, or your business, please get in touch.