Child Benefit and the Dividend Allowance

November 24th, 2015

George Osborne’s promise of a £5,000 annual tax-free dividend allowance is not quite what it seems, says the Sunday Times. It’s true that you don’t pay income tax on dividends until they exceed this amount, but the dividends are still included in your income when working out if you are entitled to child benefit, which is progressively withdrawn when your income exceeds £50,000.