High earners and investors will see their tax bill increase from the de facto hike of dividend tax announced in today’s Autumn Statement.
Chancellor Jeremy Hunt outlined £55bn worth of measures, about half of which consisted of tax hikes.
The dividend tax allowance, which has been set at £2,000 since 2018 and was previously £5,000, will be halved to £1,000 from April 2023 and further cut to £500 from April 2024. This came alongside a reduction in the capital gains tax allowance, which will fall from the current £12,300 to £6,000 next year, and then halved again in 2024.