Income Tax on Dividend - Personal Tax

dan_91x

Question:

Doris received a divident Income of £10000. Her other taxable income after personal allowances, totalled £21500.
The tax payable by Doris on these dividends is: ?

My answer:

Cumulative income: 10000+21500= 31500

5000*0% (Dividend Allowance)=0
5000*7.5% = 375

Total = 0+375=375 The answer is: 600

Can somebody explain?

fournaanjez

What tax year is it for?

The dividend allowance dropped to £2000 from 6 April 2018, which would give tax on the dividends of £600.

£2000 x 0% = £0
£8000 x 7.5% = £600

dan_91x

Oh thank you very much! I need to keep up date with changes in tax rates/bands.