Andy Woollon: Six steps to prepare for the dividend tax grab

From April next year, the tax-free dividend allowance will be slashed from £5,000 to £2,000 - more than halving the amount investors can receive in dividends before paying any tax. Among those hardest hit will be small business owners who pay themselves by dividends but it will also affect investors - especially those in retirement - who are heavily dependant on income from shares or funds. The tax grab will mean basic-rate taxpayers with dividends of £5,000 will pay an extra £225 in tax at 7.5%, higher-rate taxpayers £975 in tax at 32.5% and additional rate taxpayers £1,143 in tax at...