PTC - Tax credit on dividends

carla030698 Registered Posts: 112 🎆 🐘 🎆

I am doing the homestudy course with BPP for PTC and dont understand when to calculate the tax credit on dividend income, can anyone help???? :confused1:


  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    The dividend income needs to go into the tax computation as gross.

    Often you will be given the amount as received.

    You will then need to gross it up by /90 x 100

    Gross dividend - net dividend = tax credit

    This can then be offset against the tax calculated as due, in the same way as tax deducted through PAYE and bank interest received.


    Dividend received £90

    So £90/90 x 100 = £100

    Tax credit = £100 - £90 = £10

    Hope this helps

  • carla030698
    carla030698 Registered Posts: 112 🎆 🐘 🎆
    Thats great thanks! It seems easy now I know how!
    Maybe it was all the numbers and the chattering of the family in the background getting all too much! The joys of homestudy! :laugh:
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