Another Personal Tax question help !!!

alexp19740 Registered Posts: 16 Dedicated contributor 🦉
Brian receives income from ISA, Building Society Account, Dividends. Her other income before Personal Allowances have been deducted is £35000 for 2013-14. His other income is as follows:-

Income from ISA = 1400
Interest from Building Society = 5500
Income from Dividends = 1800

Calculate for each Income type:-
  1. Tax deducted at source
  2. Any additional tax payable
It is the spilt between additional tax on the Interest and Dividends I am struggling with.


  • CeeJaySix
    CeeJaySix Registered Posts: 645

    Take the personal allowance off the other income.
    Deduct the remainder from the basic rate band to calculate how much of that band remains.
    Gross up the interest (x100/80) and the dividends (100/90) - you may have done this already when calculating the tax deducted at source.
    Tax the gross interest at the same rates as normal income (20% in basic rate band, 40% above).
    Tax the gross dividends at 10% for any basic rate band left, or 32.5% above it.

    To work out the ADDITIONAL tax on interest and dividends, deduct the tax deducted at source (which I assume from your original post you have no problem calculating) from the tax charge on each as calculated above.
  • alexp19740
    alexp19740 Registered Posts: 16 Dedicated contributor 🦉
    Thanks Cee-Jay that has been a great help.
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