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  • FIRST POST
    • tomstickland
    • By tomstickland 7th Jan 18, 12:59 PM
    • 18,904Posts
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    tomstickland
    Personal tax allowance for funds/shares.
    • #1
    • 7th Jan 18, 12:59 PM
    Personal tax allowance for funds/shares. 7th Jan 18 at 12:59 PM
    I finally got round to reading all the rules as part of my planning. Handy extra allowance.

    "If you invest in shares or equity funds outside an ISA, you can now also earn up to 5,000 in income without paying tax on it. Dividends above 5,000 will be taxed at 7.5% for basic rate taxpayers, 32.5% for higher rate taxpayers or 38.1% for additional rate taxpayers. Note that this tax-free allowance will reduce to just 2,000 in April 2018."
    Happy chappy
Page 1
    • le loup
    • By le loup 7th Jan 18, 1:58 PM
    • 3,822 Posts
    • 3,788 Thanks
    le loup
    • #2
    • 7th Jan 18, 1:58 PM
    • #2
    • 7th Jan 18, 1:58 PM
    You should be a panellist on Mock the Week, they are always talking about two year old news.
    • Tom99
    • By Tom99 8th Jan 18, 8:46 AM
    • 2,253 Posts
    • 1,526 Thanks
    Tom99
    • #3
    • 8th Jan 18, 8:46 AM
    • #3
    • 8th Jan 18, 8:46 AM
    Tax was 0% for basic rate taxpayers so 7.5% is not a 'Handy Extra'
    • Dazed and confused
    • By Dazed and confused 10th Jan 18, 9:28 PM
    • 2,640 Posts
    • 1,266 Thanks
    Dazed and confused
    • #4
    • 10th Jan 18, 9:28 PM
    • #4
    • 10th Jan 18, 9:28 PM
    tomstickland

    Whoever you have obtained that info from isn't telling you the whole story.

    There may not be tax to pay on the dividends but people in a variety of different circumstances will have extra tax to pay because of the dividend income.

    For example (and they don't all relates to high earners) salary 100,000 and dividends 5000. No tax to pay on the dividends but you still have total income of 105000 so your personal allowance will be reduced by 2500 which at 40% is an extra tax bill of 1000 purely because of the dividend income.
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