Income tax on investment income (UK interest and UK dividend)

Hello, One of my friend had an investment account fully managed by a investment company, the account hold investment which generate UK interests and UK company dividends from shares. The investment company took 77.6% from the 100% UK interests income and 100% UK company dividends as their income (the investment company call it "performance fee", is a payment made to an investment company for generating positive returns) , the rest 22.4% (100%-77.6%=22.4%) UK interests and UK company dividends income were paid to my friend. My friend thought that she only took 22.4% of the UK interests and UK company dividends income, she should be taxed at 20% or 40% income tax on the 22.4% UK interests income and at 7.5% or 32.5% income tax on the 22.4% UK company dividends income. And we searched on Google(no related answers from Google) and asked HMRC advisor over the phone, one of the advisor said my friend should pay "taxed at 20% or 40% income tax on the 100% UK interests income and at 7.5% or 32.5% income tax on the 100% UK company dividends income" without giving my friend related HMRC guidance. It doesn't seem right as if my friend's UK interests taxed at 40% from the 100% of the UK interests income, and the investment company also took 77.6% from the 100% of the UK interests income. In this case, she made 17.6% loss from the UK interests income (100%-40%-77.6%=-17.6%) We wonder is there any HMRC guidance on this? Many thanks!

Hi,

The rate of tax would depend on the individual's circumstances.  

Income tax is calculated in a fixed sequence.  Non savings income first, then savings income and then dividend income. The rates of tax on interest are 20% and 40% and dividends 8.5%, 33.5% and 39.5%

Income Tax rates and Personal Allowances

We are unable to comment on the rates of tax that will apply. The fees charged by the investment company would not be included by your friend for tax purposes.

Thank you.