Family businesses pay higher dividends to avoid tax rate
Companies plan to hand out larger dividends before April cut off to offset tax rise
Family businesses are considering doubling their normal dividend to offset
the Government’s tax hike on high income earners.
The government’s controversial 50% tax increase for those earning more than
£150,000 on April 5, could be countered by family companies in a move which
would allow family members to limit their tax liability,
Mary Monfries, head of UK private business at PricewaterhouseCoopers, said
she has had a couple of clients “seriously thinking” about how to plan their
finances over the next few years.
“I have had a couple [of clients] seriously thinking ‘What do I need
funding-wise over the coming few years? If I take it out before April it will
cost me less than if I did it afterwards’,” she said.
Read the full story:
plan bumper dividends to beat income tax rise