You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
Tel. +44 020 3397 1117 Email. email@example.com
Grace Frank can help taxpayers with any queries you have regarding dividends – here is an overview of the new Dividend Allowance scheme...
A person does not have to pay tax on the first £2,000 of dividend income, regardless of the level of non-dividend income. Tax is charged on dividends received over £2,000 at the following rates:
The Dividend Allowance does not reduce total income for tax purposes, and dividends within the allowance still count towards the appropriate basic or higher rate bands. They may therefore affect the rate of tax payable on dividends received in excess of the £2,000 allowance.
This example, based on 2020/21 tax rates and allowances, shows the taxable amounts.
This example shows a higher rate taxpayer. The Dividend Allowance uses up some of the basic rate band and so less is available to be taxed at 7.5% rather than 32.5%.
Grace Frank can advise businesses on a range of tax issues relating to dividends. Please contact us for more information.
Why not register to receive our Monthly Newswire?
Once a month we‘ll send you an email packed full of essential business news and handy tax tips to help save you money.
Sign up now
19 Jan 2022
The cost of living rose at its fastest pace in nearly 30 years in the year to December, according to the latest figures from the Office for National Statistics (ONS).