Dividend allowance

Rio Registered Posts: 7
Dividend allowance is £5000 in Kaplan books but on AAT answers to practice assessment 2 question 4 and 5 is £2000?


  • MarieNoelle
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    Which Finance Act are you working on? The allowance was £5000 until 5th April 2018 and is now £2000 for the tax year 2018-19.
  • amurray
    amurray Registered, MAAT, AATQB Posts: 304 Dedicated contributor 🌟 🐵 🌟
    Hi Rio,

    The AAT exams are currently being examined on the Finance Act FA2016, where the Dividend allowance is £5,000 (this being taxed at the Dividend Nil Rate).

    As Marie advised £2,000 relates to FA 18/19. The AAT have recently uploaded practice assessments to the study support section which includes exams from 1st January 2019, being the FA18/19 Act (This is why you are seeing the £2,000 allowance in the answers).

    There is still the practice assessments for the FA2016 related exam which is being examined up until 31st December 2018.
    Completed AAT in March 2020
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