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Dividend tax rates hike: Plan ahead

Shared from Tax Insider: Dividend tax rates hike: Plan ahead
By Sarah Bradford, December 2021

Sarah Bradford outlines changes to the rate of dividend tax applying from April 2022, and suggests how the rises might be beaten by planning ahead. 

From 6 April 2023, a new health and social care levy (HSCL) is being introduced to provide ring-fenced funding for health and adult social care. The levy is linked to National Insurance contributions (NICs), and payable by those who pay a qualifying National Insurance contribution, or would who do so but for the fact that they have reached state pension age.  

Prior to the introduction of the levy, NICs (with the exception of Classes 2 and 3 NICs) are increased for 2022/23 only; the funds being raised by the temporary increase being set aside to meet health and social care costs. 

As payment of the HSCL is linked to NICs, anyone who does not pay a qualifying National Insurance

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