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  • 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%?