Thoughts on 1.25% Tax Increase on Dividend Income

[Albatross]

Hello All - what are your thoughts on the increase to tax on dividends in the context of FIRE?

 - Does it change how you structure your portfolio?

 - Does it increase your FIRE amount or otherwise affect your time to FIRE?

Not starting this thread to spark a political decision on the rights / wrongs of implementing this law - just want to see how it will / may affect our plans for FIRE.

[ixtap]

My plans are more affected by the brackets than a slight adjustment to the % within each bracket.

Uhh, didn't notice this was UK, so glad to see it still applies....

[bownyboy]

My plans are more affected by the brackets than a slight adjustment to the % within each bracket.

Agree with this. I always draw small salary and dividends up to the 7.5% (now 8.75%) bracket, dump £40k into SIPP and leave the rest in the business.

So won't have any real impact on our plans.

[daverobev]

I would assume for the vast vast vast majority of people this will have no impact whatsoever. The NI increase on earned income yes absolutely, but the UK is so generous with tax shelters already - if you're filling your ISA, putting money into a pension, presumably you still get the dividend allowance.

Even for someone pulling divs from a company, it's peanuts compared to everything else...