Income Tax on Dividend - Personal Tax
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dan_91x
Registered Posts: 8
in Personal Tax
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?
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=
Can somebody explain?
0
Comments
-
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% = £6002 -
Oh thank you very much! I need to keep up date with changes in tax rates/bands.0
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