Britons urged to ‘maximise’ tax allowances before thresholds slashed next year | Personal Finance | Finance

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An individual also has a dividend allowance each year and will only pay tax on dividend income above this allowance, and there is no tax to pay on dividends from shares in an ISA.

In the Autumn Statement, Jeremy Hunt announced plans to slash the dividend allowance from £2,000 to £1,000 next year.

Similar to the plans for the CGT allowance, the dividend allowance will be halved again in April 2024, to £500.

How much tax a person pays on their dividends income over the allowance amount depends on their income tax bracket.

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