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Posted Wed, 08 Mar 2023 11:46:49 GMT by n sal
If the gross income including savings and dividend income exceeds the basic tax rate threshold ( £50270) but sufficient gross pension contributions ( that enlarge the basic rate tax band by the same amount) are then paid in that year to ensure that the entire gross income is kept within the expanded basic rate tax band, then: 1 ) will the Personal Saving Allowance PSA be preserved at £1000 ( instead of normally dropping to £500 for higher rate tax payers) and will any remaining savings above that PSA be then taxed at the basic rate instead of the higher rate? 2) will the dividend income above the £2000 dividend allowance be taxed at the basic rate ( 8.75%) instead of the higher rate?
Posted Thu, 09 Mar 2023 16:40:56 GMT by HMRC Admin 10
The personal savings allowance would still remain at £500 to leaving the remaining interest liable at basic rate.
The dividends, if over £2000, will be liable at the higher rate which for 22/23 is 33.75%.

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