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Branston Adams can help taxpayers in the Surrey area with 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 is a quite straightforward example, based on 2019-20 tax rates and allowances, showing the taxable amounts after allocating the relevant allowances to the two types of income.
This example is more complicated, in that it splits the dividend allowance into two - £1,500 to use up the balance of the basic rate band and £500 to 'eat into' the higher rate band.
Branston Adams can advise businesses in the Surrey area on a range of tax issues relating to dividends. Please contact us for more information.
15 Oct 2019
On 14 October, the UK government laid out its policies on trade, crime, the environment and Brexit in the Queen's Speech.
14 Oct 2019
Chancellor Sajid Javid has announced that he will deliver the 2019 Autumn Budget on Wednesday 6 November.
11 Oct 2019
The Institute of Chartered Accountants in England and Wales (ICAEW) has stated that 'lessons must be learned' from the controversy surrounding the loan charge.
Get in touch with Branston Adams to arrange your free consultation.