You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
+44 (0) 1252 728 598
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 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%.
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 2021
A joint statement issued by 41 of the UK's trade associations has called on the government to reform business rates in order to help unlock green investment.
14 Oct 2021
HMRC has reminded self assessment taxpayers that the deadlines for filing 2020/21 tax returns are now approaching.
13 Oct 2021
Chancellor Rishi Sunak will have 'little room for manoeuvre' in this month's Budget and Spending Review, according to the Institute for Fiscal Studies (IFS).
Get in touch with Branston Adams to arrange your free consultation.