One in four investors to lose out in dividend tax raid One in four investors including many motorsport business owners face losing out from impending changes to the annual dividend allowance. The annual dividend allowance – the amount a person can earn from shareholder payouts before tax is due – will fall from £2,000 to £1,000 in April and then to £500 in 2024. The Government says the move will raise £420m in the first two years and more than £3bn by 2028. HMRC estimates that around 3.2m people will be caught when the allowance is halved, with a further 1.2m hit when the allowance is reduced again next year. Analysis suggests that the strength of the London stock market could mean even more are affected.