You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
01702 297383 - email@example.com -
10 Towerfield Road, Shoeburyness, Essex SS3 9QE
Insight Strategic Associates can help taxpayers in the Shoeburyness, Essex 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%.
Insight Strategic Associates can advise businesses in the Shoeburyness, Essex area on a range of tax issues relating to dividends. Please contact us for more information.
View the latest monthly blog post from Insight Strategic Associates.
A free monthly email packed full of essential business news.
Check out all Insights latest news and events.