PLEASE NOTE THIS VIDEO WAS RECORDED SHORTLY BEFORE THE UK GOVERNMENT PROPOSED AN INCREASE OF 1.25% IN DIVIDEND TAX RATES STARTING FROM APRIL 2022. ALL FIGURES IN THIS VIDEO REMAIN VALID FOR THE CURRENT 2021-2022 TAX YEAR
Sheltering your dividends from tax is of fundamental importance if you are building a dividend portfolio. If your UK dividend income exceeds £2000 a year and is outside a tax shelter then you could be liable for up to 38.1% tax on those dividends depending on your income tax bracket. This could have a devastating impact on your long term wealth creation. Taking simple steps can reduce or eliminate dividend tax in your portfolio.
I discuss the benefits of a stocks and shares ISA, Bed and ISA transactions and briefly touch upon overseas and US withholding tax.
Disclaimer:-
The content of this video is not investment or tax advice and is for entertainment purposes only. Tax is an extremely complex subject and you should therefore take professional guidance. Please do your own research.
