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Posted Tue, 03 May 2022 15:18:56 GMT by hsuwinson
Hi, I relies solely on dividend for living. If my annual dividend is 60K, after subtracting the personal income allowance and dividend allowance, are my remaining dividend taxed at basic rate, or part if it will be taxed at higher rate? In other words, will dividend raise my income tax band to above basic rate, if i am a retired person who has zero income from work. Thanks!
Posted Wed, 04 May 2022 14:28:05 GMT by HMRC Admin 17

Hi,
 
Please see the following link regarding Income Tax rates and bands, if part of your Dividend income would put you into the Higher Rate threshold,
you would pay some tax at 33.75% :

Income Tax rates and Personal Allowances   and :

Tax on dividends   .

Thank you.
Posted Mon, 22 May 2023 16:42:18 GMT by hsuwinson
Hi, I have foreign dividend from shares. In that country, banks used to subtract some service fee for the dividend payout. Would like to check are those fee deductible from the dividend. If yes, should I subtract it from the dividend before applying the tax percentage, or subtract it only after applying the dividend tax percentage on the dividend amount before fee?
Posted Thu, 25 May 2023 10:50:07 GMT by HMRC Admin 32
Hi,

No. I regret that those fees are not deductable from the dividend. The fact your bank charges you a fee is not an allowable cost.

Thank you.

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