- CGT and dividend tax allowances will be cut again from April
- Aim for tax efficiency, keeping your income tax band in mind
- Pension contributions more key than ever
Jeremy Hunt’s focus on national insurance cuts in his Spring Budget earlier this month did not change the fact that taxes are going up for a number of people. Among this group are investors, who are facing important reductions in both the capital gains tax (CGT) and the dividend tax allowances.
The CGT allowance decreased from £12,300 to £6,000 last April, and will be halved again to £3,000 from next month. For an investor in the higher income tax band, this means a tax hike of up to £1,260 between 2022-23 and 2023-24, and another £600 on top of that for all subsequent years from 2024-25.