You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
Business Advisers | Chartered Accountants | Statutory Auditors
020 8785 4690
Liles Morris can help taxpayers in the Surrey area with queries you have regarding dividends – here is an overview of the Dividend Allowance scheme...
From 2023/24 a person does not have to pay tax on the first £1,000 of dividend income, regardless of the level of non-dividend income. This Dividend Allowance has reduced from £2,000 in 2022/23 and will decrease further to £500 in April 2024.
For 2023/24 tax is charged on dividends received over £1,000 at the following rates:
The Dividend Allowance does not reduce total income for tax purposes, and dividends within the allowance still count towards the appropriate basic or higher rate bands. They may therefore affect the rate of tax payable on dividends received in excess of the £1,000 allowance.
This example, based on 2023/24 tax rates and allowances, shows the taxable amounts.
This example shows a higher rate taxpayer. The Dividend Allowance uses up some of the basic rate band and so less is available to be taxed at 8.75% rather than 33.75%.
Liles Morris can advise businesses in the Surrey area on a range of tax issues relating to dividends. Please contact us for more information.
Register and once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.
Discover how we can help you grow your business, pay less tax and realise your ambitions – contact us today for bespoke solutions tailored to you.