Dividend Allowances and Capital Gains Tax Cuts

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Dividend Allowance

As a Shareholder of a Limited Company you make take dividends, in the Autumn Budget it was announced that the tax-free allowance for dividend income (the ‘dividend allowance’) will be reduced from £2,000 to £1,000 from 6 April 2023 and then to £500 from 6 April 2024 for individuals who receive dividend income.


Capital Gains Tax

Capital Gains Tax is payable for the following:

  • When business owners sell assets such as land and machinery.
  • when people sell or gift certain items worth more than £6,000 such as antiques or art, or assets including second homes and shares held outside of an Individual Savings Account or Personal Equity Plan.
  • Anytime you sell a taxable asset and receive more for it than you paid, CGT will apply (there are a few exceptions)
  • You must also pay CGT on any cryptocurrency gains that are realised.

The CGT annual allowance will be reduced from £12,300 to £6,000 from April 2023 and then to £3,000 from April 2024.



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