You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
Schedule an initial consultation
Call us on - 01342 824181 | E-mail - info@dmcpartnership.com
DMC Partnership 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 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.
Dividend Allowance
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.
DMC Partnership can advise businesses on a range of tax issues relating to dividends. Please contact us for more information.
19 Jul 2019
The Office for Budget Responsibility (OBR) has warned that public borrowing could double next year if the government fails to secure a Brexit deal.
If you wish to schedule an initial consultation then please request a call back using our helpful form below, and we will be in touch as soon as possible.