Income Tax on Dividend - Personal Tax

dan_91xdan_91x Registered Posts: 7
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?

Comments

  • fournaanjezfournaanjez Registered Posts: 32
    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
    MarieNoelledan_91x
  • dan_91xdan_91x Registered Posts: 7
    Oh thank you very much! I need to keep up date with changes in tax rates/bands.
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