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Symvan Capital – What does this April’s dividend change hold for EIS investments?

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Kealan Doyle, CEO of the award winning Symvan Capital looks at what this April’s dividend change hold for EIS investments?

During last summer’s Budget, the Chancellor announced that dividend tax rates would rise by what amounts to an effective 7.5 percentage point increase for each of the three tax bands for the 2016/17 tax year. The impact on SME owners has been dramatic, to the extent that the government estimates that it will receive an additional £2.5 billion in tax on dividends for the current 2015/16 tax year, as a lot of entrepreneurs are expected to take cash out of their businesses ahead of 6 April 2016.