Tips to stay on top of financial planning next year
By Kirsten Hastings, 22 Dec 15
This year has brought about a significant number of changes that impacted the personal finance landscape. There have already been a number of announcements which will affect people’s financial plans, says Andy Cumming, head of advice at Close Brothers Asset Management, who outlines four key things to watch out for in 2016.
Caught up in dividend taxation:
From April 2016, the current system will be overhauled, to be replaced by a far simpler system but one which could have a significant impact for small business owners.
The tax-free dividend allowance of £5,000 a year will help smaller investors looking for income from their shares, but will hurt those business owners who pay themselves lower salaries and rely on higher dividend income.
Should their dividend income exceed, even slightly, the £5,000 band they risk being hit much harder without appropriate planning. It’s important for investors to consider whether their current strategy will mean they are worse off come April and whether a change is needed.
Tags: Close Brothers | Lifetime Allowance
