Does dividend tax apply to dividends falling within the personal allowance?

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TheCyclingProgrammer replied

26 November 2017, 21:33
Yes, it’s correct. The dividend tax bands apply to taxable dividends in excess of the personal allowance.
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jamesbrown replied

26 November 2017, 14:55
Assuming there are no other types of income, yes, because dividends form the top slice of income. Strictly, it's not a dividend "allowance", but rather a zero-rate band. Also, note that it will be reduced from 5k to 2k from next April.
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willendure started a topic Does dividend tax apply to dividends falling within the personal allowance?

26 November 2017, 14:34
Does dividend tax apply to dividends falling within the personal allowance?

I am looking at this dividend/directors salary income tax article here:

https://jf-financial.co.uk/2017/01/1...idends-201718/

It says: "Salary is £8,164 so this leaves £3,336 of dividends that can be taken tax free in the personal allowance (£11,500 less £8,164).

The next £5,000 of dividends are also tax free as they are within the dividend allowance. The leaves the balance of dividends of £28,500 taxed at 7.5% = £2,138 of tax."

So a total of £8336 in dividends incurred no extra tax. Is this correct?
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