Post by mrclondon on Jul 28, 2015 11:06:43 GMT
I've been musing as to whether the recent announcement of increased taxation of dividends from next April will in the short term weaken the balance sheets of SMEs as shareholders extract as much free cash as possible as dividends this tax year ? Of course the prudent owner-director would re-introduce the money as a loan to fund working capital but will the majority ?
Could this increase the risk, particularly with respect to un-secured loans, that businesses will fail ?
Thoughts ?