https://help.gosimpletax.com/hc/en-gb/articles/202028878-Tax-on-UK-dividends
What is a dividend?
To put it simply, a dividend is money that a limited company pays to its shareholders. Only limited companies can pay dividends; partnerships and sole traders cannot. Many limited companies pay regular dividends to shareholders on a quarterly basis, and if you have a considerable number of shares, this can certainly add up. Income from such investment is taxable and there are three different rates. Today, SimpleTax will explain the different income tax rates on UK dividends.
Different dividend tax rates from 6 April 2016
The notional 10% tax credit on dividends is abolished
A £5000 tax free dividend allowance is introduced (this reduces to £2000 from 2018/19)
Dividends above this are taxed at
BASIC RATE 7.5%
HIGHER RATE 32.5%
ADDITIONAL RATE 38.1%
Dividends received by Pensions and ISA's are unaffected
Dividend Income is treated as the top band of income
Individuals who are basic rate payers who receive dividends of more than £5001, will have to complete a Self Assessment from 6 April 2016.
If you receive dividend income, whether you pay tax or not, you must declare dividend income each year via self-assessment. But don’t worry, SimpleTax is here to make things extra easy. Take the hassle-free route to filing your taxes; Go SimpleTax
Other Keywords: dividend; interest; net; divi; shares
Related Articles
https://help.gosimpletax.com/hc/en-gb/articles/202367047-Investments-Interest-and-Dividends
Almost all income obtained through interest or dividends must enter your Tax Return and most investments are entitled to tax relief. Annual investment statements may show three amounts: ‘gross interest’, ‘tax deducted’ and ‘net interest’. You must ...
https://help.gosimpletax.com/hc/en-gb/articles/115000656410-Dividends-Calculation-Change
From 6th April 2016, after including a £5,000 ‘dividend tax allowance’, dividends are taxed at 7.5%, 32.5% and 38.1% (basic, higher and additional bands). To view the calculation Click on REPORT Click on VIEW TAX CALCULATION
https://help.gosimpletax.com/hc/en-gb/articles/115001748884-Foreign-Income-not-liable-to-UK-Tax
You’ll need Helpsheet 211, ‘Employment –residence and domicile issues’ to work out the amount to put in this section if you • are, will be or have been, non-resident or claiming split-year treatment and have been non-domiciled • are, or will be, ...
https://help.gosimpletax.com/hc/en-gb/articles/115000001210-Does-SimpleTax-submit-Trust-SA900-tax-returns-
Unfortunately SimpleTax does not support the submission of Trust Tax returns (SA900). We only support the completion of the form SA107 required when an individual receives income from a Trust.We would recommend you visit the HMRC website at ...
https://help.gosimpletax.com/hc/en-gb/articles/202028598-What-is-Income-Tax-
Our mission is to make tax simple and save you stacks of cash! Income tax has been confusing UK taxpayers for years resulting in taxation panic and worry, but SimpleTax is here to make things easy. Today, we’re going back to basics; we’re going to ...