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Chartered Certified Accountants and Registered Auditors
020 8866 7062
Jon Avol Waterfords can help taxpayers in the Pinner 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. From 2022/23 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 2022/23 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 8.75% rather than 33.75%.
Jon Avol Waterfords can advise businesses in the Pinner area on a range of tax issues relating to dividends. Please contact us for more information.
Regulated for a range of investment business activities in the United Kingdom by the Association of Chartered Certified Accountants.