Pension contributions and dividend tax

If I was due to earn £50,000 for this tax year from employment and received dividends of £10,000, I will be required to pay dividend tax at 33.75%. However if I paid £10,000 into a personal pension, my understanding is that this will raise the tax thresholds by £10,000. As a result, would my dividend tax rate then be at the lower rate of 8.75%?

Hi Garspe1,

Based on your scenario, yes, the dividend rate would be 8.75%,

Thank you.