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Posted Tue, 02 Jan 2024 22:59:36 GMT by
Hello, From my understanding, the first £2000 dividends should be exempt from taxes & all dividends above this threshold should be taxed at the income tax %. However when entering my dividend payments in the "Dividends from foreign company" section it seems that the discount is not applied and that my tax rate on dividends goes up to 48.5%. Can you let me know what could be my mistake? Thanks J.
Posted Wed, 10 Jan 2024 12:02:29 GMT by HMRC Admin 19

Foreign dividends should be shown on page F2, in the section for income from overses sources under dividends, including any foreign tax deducted and in the equivalent section of the online return.  

Tax is calculated in a fixed sequence, with dividends being taxed after other incomes in the calculation. The calculation should show basic rate band at nil rate, £2,000 x 0% = £0.00 with the dividends then being allocated against the relevant rate of dividend tax.  

You will need to contact the Self Assessment team for a more detailed reply.

Self Assessment: general enquiries

Thank you.

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