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UK to Introduce New Levy and Increased Dividend Tax for Individuals to Fund Plan for Health and Social Care

09 September 2021

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Proposed Changes

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United Kingdom

The UK Government has published a policy paper that was laid in Parliament on 7 September 2021, setting out the government's new plan for health and social care, which will require increased funding through increased taxes. The funding will come from the introduction of a new 1.25% Health and Social Care Levy based on National Insurance contributions (NICs) that will be ringfenced to fund the investment in health and social care set out in the plan. In addition, the rates of dividend tax paid by individuals who receive dividend income from shares will be increased by 1.25%. Both the new...