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Old 13th May 2008, 18:08   #19
dude69
Fingers like lightning
 
Join Date: Jan 2006
Posts: 519
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Quote:
Originally Posted by Lewis View Post
I agree, what you says sounds right about the threshold.
But it is surely £135-£120 saving from higher PA = £15 tax rise.
Assuming your salary is > (new) PA.
No. Not at all.

There is no tax saving from the higher PA. Because dividends are not taxed in the first place and NI @ 11% still applies (of course if you have savings income of £600+, then this will indeed be a £120 tax cut).
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