Another tax question - personal allowance/savings income/div

hazellend
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Another tax question - personal allowance/savings income/div Apr 5, 2017 8:28:55 GMT

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Post by hazellend on Apr 5, 2017 8:28:55 GMT

Hi All,

Just trying to work out future tax planning. Please help with the following example.

Earned income = 0

Savings income - 17k - zero tax to pay

Dividend income = 16k is this tax free or would there be 7% to pay on (16 - 5k allowance) 11k

Does the savings income affect your personal allowance?

SteveT Member of DD Central Posts: 6,873 Likes: 7,918	Another tax question - personal allowance/savings income/div Apr 5, 2017 11:44:34 GMT via mobile Quote Select Post Deselect Post Link to Post Back to Top Post by SteveT on Apr 5, 2017 11:44:34 GMT You would get £5k of the dividends tax free

mason Member of DD Central Posts: 662 Likes: 640	Another tax question - personal allowance/savings income/div Apr 5, 2017 12:11:53 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by mason on Apr 5, 2017 12:11:53 GMT The basic rate of tax for dividend income is 7.5%. Otherwise, numbers look ok.

archie Posts: 1,838 Likes: 1,842	Another tax question - personal allowance/savings income/div Apr 5, 2017 12:15:20 GMT Quote Select Post Deselect Post Link to Post Back to Top Post by archie on Apr 5, 2017 12:15:20 GMT Dividend allowance drops from 5k to 2k for 18/19 tax year.
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Another tax question - personal allowance/savings income/div

Post by hazellend on Apr 5, 2017 8:28:55 GMT

Post by SteveT on Apr 5, 2017 11:44:34 GMT

Post by mason on Apr 5, 2017 12:11:53 GMT

Post by archie on Apr 5, 2017 12:15:20 GMT