Tax on saving interest and dividend

Hi, I am not working and only have foreign dividend income (around £20,000 per year). I also have saving interest income of £14,000, may I know if the following tax calculation is correct? Taxable income: £20,000 + £14,000 - £12,570 = £21,430 I would have £5,000 at the starting rate for savings at 0%, £1,000 tax relief at 0%. Basic rate tax (£21,430 - (£5,000+ £1,000) at the rate of 20% = £3,086 Thank you!

Hi, please ignore my previous question. Please see below for my case. Appreciate much if you can confirm whether my calculation is correct. I only have dividend income £5,000, and saving interest income of £11,600. Total taxable income is £16,600. No tax payable on the interest income because it is under my personal allowance. I assume I can utilise the unused personal allowance (i.e. 12,570 - 11,600 = 970) for dividend income. Tax on the dividend income at basic rate = £5,000 - £970 - £1,000 (dividend nil rate), at the rate of 8.75% = £265 Is it correct? Thank you!

Hi
If this is for the 23/24 tax year, yes. If for 22/23, no as the dividend allowance is £2000
Thank you

I has a follow up enquiry about the priority of using the personal allowance (12570), is it start from "salary>saving interest>dividends>any other"? Or depend which final tax result is smaller? I am appreciated if you can provide the documentation description? For example in 2023 to 2024 tax year: saving interest is: 15570 dividends is: 3000 Does below Method I calculation correct? 12570 (personal allowance) - 3000 (dividends) =9570 (remaining personal allowance) 9570(remaining personal allowance) + 5000 (starting rate of saving) + 1000 (personal saving allowance) - 15570 (saving interest) = 0 Therefore, no tax has to pay. Or method II: 12570(remaining personal allowance) + 3000 (used 3000 out of 5000 starting rate of saving) + 0 (used 0 out of 1000 personal saving allowance) - 15570 (saving interest) = 0 3000 (dividends) - 1000 (dividends allowance) = 2000 Final tax is 2000*8.75%

Hi Gj,
Tax due on savings income will be calculated first, after which tax due on dividend income will be calculated.
Thank you.

I just posted a similar question. Much appreciated if you would let us know the detailed calculation of the tax payable for the incomes provided in the second post by Gj above, having regard to the principle that tax due on savings income will be calculated first. Many thanks!

I need some help. I'm trying to calculate my wife's tax due on her savings and dividend payments. Am I right in this calculation. Personal Allowance 12570 + transfer of marriage allowance 1260 Total tax free 13830 Less state pension 8494 + personal pension3967.44 Total tax free surplus 1368.56 Savings allowance 1000+ 5000 additional + surplus tax free Total allowance 7368.56 Total savings interest 13089.37 minus allowance 7368.56 = 5720.81 ×20% =1144.16 tax to pay. Dividend payments Total 6988.24 less 1000 allowance 5988.24 x8.75% = 523.97 tax to pay. Total tax 1668.13. Is this correct.