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Assurance Office, Swan House, 146 - 147 St Helens Road, Swansea SA1 4DE
Call us on: 01792 720170
Assurance Accountancy can help taxpayers in the Swansea 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%.
Assurance Accountancy can advise businesses in the Swansea area on a range of tax issues relating to dividends. Please contact us for more information.
15 Apr 2021
The Federation of Small Businesses (FSB) has urged the government to act in order to support small businesses exporting to the EU.