Dividend allowance

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

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  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    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 Posts: 304 Dedicated contributor 🦉
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    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.
    MAAT, AATQB, MICB PM.Dip.
    Completed AAT in March 2020

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