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Posted Fri, 04 Aug 2023 15:53:34 GMT by KuenHK
Hi Sir / Madam, It is understood that, as my foreign incomes including dividends and bank interests for the UK part of tax year are more than the dividends allowance threshold (GBP 2,000), I am required to submit the self-assessment tax return with split year treatment applied. For my UK part of the tax year (since the date I get my only home in UK), I had NO any employment income neither in UK nor overseas areas, what I rely on to sustain my family and myself's UK living expenses are from my foreign dividends and bank interests. For my above situation with no salary income but with foreign dividends+ interests only, I would like to ask if my income tax will be generated for the remaining dividend amounts after all deductions of standard personal allowance (GBP 12,570), starting rate of personal saving allowance (GBP 5,000) and dividends allowance (GBP 2,000). That means, there is a total of GBP 19,570 allowable income for tax free when calculating my income tax. Please correct me if my above thought and assumption is wrong. What will then be the correct income tax generation after the deduction of all available allowances of tax free for my specific case? Thank you.
Posted Wed, 09 Aug 2023 13:09:45 GMT by HMRC Admin 32

The additional savings allowance is only applicable on interest and not dividends so for 22/23 you would have the dividend allowance of £2000 plus personal allowance (if applicable) £12570.

Please see guidance here.

Tax on dividends

Thank you.

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