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Posted Mon, 20 Mar 2023 17:06:51 GMT by Garspe1
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%?
Posted Fri, 24 Mar 2023 11:57:45 GMT by HMRC Admin 20
Hi Garspe1,

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

Thank you.

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