![\"\"](\"https:\/\/dev.withcreative.co.uk\/langricks\/wp-content\/uploads\/2021\/05\/nigel-shaw-1-e1620292383802.jpg\")
<\/p>\n<\/p>\n
Sometimes it can be very hard to understand what the current Government\u2019s strategy is in relation to HMRC and the services it is expected to provide to the wider tax paying public.<\/strong><\/p>\n At a time when HMRC is overloaded with rolling out its digital services across the UK and frankly struggling to keep the tax system of a G7 country going, along comes a series of further tax increases aimed at individual taxpayers (we will not address the increases aimed at companies in this blog) which could add a further million or so ‘customers’ wanting to ‘engage’ with the already over-stretched staff at HMRC offices across the UK<\/strong><\/p>\n We have come a long way since the introduction of the Dividend Tax allowance which started off at \u00a35,000 pa back in 2016.<\/p>\n From April 2023 it is going to be cut from \u00a32,000 to just \u00a31,000<\/em><\/strong> and if that was not enough, it will be reduced again from April 2024 to just \u00a3500 (you know where we go next when a tax allowance reaches this low level)<\/p>\n What does this mean for those who receive in excess of \u00a31,000 via dividends in current tax year?<\/strong><\/p>\n You will need to assess whether you are liable for Dividend Tax and make sure you register for Self-Assessment Tax Returns in 2023\/24 (if not already registered).<\/p>\n We do not recommend that you attempt to call the HMRC Helpline on this query, the onus is on you to determine your status for 2023\/24 but make sure you get it right as it is deemed your taxpayer responsibility!<\/em><\/strong><\/p>\n We can already see a multitude of more elderly, less tech savvy individuals who have kept all their 1980\u2019s privatisation shares (in their own names usually) producing dividends of more than \u00a31k pa, it will be time for them to join the great digital tax revolution, bet they can\u2019t wait!<\/p>\n Similar to the Dividend Tax Allowance HMRC are now also reducing what is called the \u2018annual exempt amount\u2019 <\/strong>to just \u00a36,000<\/strong> for the tax year just started. For Trustees it will be half that at just \u00a33,000.<\/p>\n We can see Wealth Managers showing concern now as historically they will have kept their clients\u2019 capital gains within these amounts for fear of incurring an actual charge to Capital Gains Tax (\u2018if only\u2019, some may say after the last 18 months of poor stockmarket performance);<\/p>\n On the positive side our Prime Minster will now have to pay a bit more tax each year (to be precise just \u00a31,260) so that\u2019s good!<\/p>\nBelow are examples of what is in store for tax year 2023\/24 which started on 6 April 2023:<\/h3>\n
<\/h4>\n
Dividend Tax<\/h4>\n
Capital Gains Tax<\/h4>\n