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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 example, based on 2020/21 tax rates and allowances, shows the taxable amounts.
Personal Allowance
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.
03 Mar 2021
Within his Budget speech, Chancellor Rishi Sunak unveiled billions in financial support for businesses and families adversely affected by the coronavirus (COVID-19) pandemic.
Addressing the House of Commons, Chancellor Rishi Sunak used the 2021 Budget to 'do whatever it takes' to financially support people and business as the UK recovers from the coronavirus (COVID-19) pandemic.
Business groups have responded to Chancellor Rishi Sunak's 2021 Budget speech.
Get in touch with Branston Adams to arrange your free consultation.