You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
0141 221 7446 - email@example.com -
An outline of the changes to the rules regarding dividends.
Gerber, Landa & Gee can help taxpayers in the Glasgow 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.
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%.
Gerber, Landa & Gee can advise businesses in the Glasgow area on a range of tax issues relating to dividends. Please contact us for more information.
Why not register to receive our Monthly Newswire?
Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.
Sign up now
20 Oct 2021
Homeowners in England and Wales will be offered subsidies of £5,000 from next April to help them to replace old gas boilers with low carbon heat pumps.
It is clear to see that cloud accounting is the way forward: its ease of use, accessibility and cost effectiveness ensures that it remains a popular choice for many businesses.