Do I need to pay tax on my dividends?

System

This discussion was created from comments split from: Carers Allowance - Are dividends earnings or income?.

Freddy1968

I am a full time carer for my disabled son in receipt of carers allowance. I am not in any paid work, but I do have some stocks and shares not in an ISA. There are likely to be some dividends. Do I need to pay tax on the dividends? Can anyone clarify the tax rules. 

kaMelo

It depends upon how much you're talking about. 

You have your personal allowance as indicated by your tax code, plus the dividend allowance of £500.

If all your taxable income including dividends is lower than your personal allowance plus the dividend allowance then there will be no tax to pay on any dividend income.

MSE_ForumTeam5

@freddy1968 - we've split this into its own thread on the tax board