Your advice please

EdInvestor

jem16 wrote: »

Dividend payments count as taxable income so it's not enough to say they will be tax free. The payments could push you over the £22k limit you talk about.

Remember they will be replacing the rental income. To expand, basic rate taxpayer pay no tax on dividends as it is covered by the tax credit which comes with the divi.High rate taxpayers pay 25% (still a lot lower than the 40% tax they pay on rent or savings, of course.)

Any income which pushes you over the 22k-ish level if you are over 65 results in something called "age allowance clawback" which means your generous tax free allowance (currently just over 9k) gets clawed back at a punitive rate.But you (or your accountant) will be aware of this already if it is the case.