Dividends and personal allowance question

Chippy99

Please would some knowledgable soul help me understand the impact of dividend income on your overall tax bill?

Suppose you have a salary of £100k and therefore you would receive personal allowance of £11,000 and £89,000 would be taxable. If you receive dividend payments over and above the £100k, do those dividend payments reduce your personal allowance in the same way as salaried income does, i.e. 50p of personal allowance is lost, per £1 of income above £100,000?

Thanks to anyone who knows the answer.

classy69

Hi, in answer to your question yes it does reduce the personal allowance just like it would any other income over £100k.

Chippy99

Bummer :-(

Thanks for the reply though.