Dividend Tax

sabelu

What are the annual allowances for this please?
Does this count as to claim tax relief on charitable donations?
How do the HMRC get to know how much dividend on shares i get every year does my broker inform them?
I do not file a tax return as my pension income is below my annual allowance and my SIPP provider administers the zero PAYE and issues a P60.

Dazed_and_C0nfused

There is no separate allowance for dividends.

Above the Personal Allowance (which must be fully used before these apply) the tax rates are,

0% dividend nil rate (aka Dividend Allowance)
8.75% dividend basic rate
33.75% dividend higher rate
39.35% dividend additional rate

The first £1,000 (of anything above the Personal Allowance) will always be taxed at the 0% rate.

Assuming your dividends are less than £10,000 and you don't need to complete a tax return for any other reason then you are responsible for notifying HMRC of any taxable income.  Although they don't seem interested if dividends are less than £1,000.

sabelu

But i cant declare gift aid then on divi tax only on CGT or taxed income

Dazed_and_C0nfused

Tax you pay on dividend income counts as far as the tax relief on Gift Aid donations is concerned.

Don't know about CGT to be honest.

[Deleted User]

Dazed_and_C0nfused said:

Tax you pay on dividend income counts as far as the tax relief on Gift Aid donations is concerned.

Don't know about CGT to be honest.

CGT also counts.

Your donations will qualify as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April).

The tax could have been paid on income or capital gains.

https://www.gov.uk/donating-to-charity/gift-aid