HM Treasury’s United Kingdom Budget 2005

brought to you courtesy of Grant Thornton


brought to you courtesy of Grant ThorntonTaxation of Dividends

On the gross amount1 at the rate of

  • 10% for starting and basic rate taxpayers – liability covered by tax credit
  • 32.5 % for higher rate taxpayers – equivalent to effective rate of 25% of dividend received2
  • 32.5 % for discretionary and accumulation and maintenance trusts – equivalent to effective rate of 25% of dividend received

Shareholders are not entitled to repayment of tax credits

1 Dividend received plus tax credit
2 Unless, for 2005/2006, income does not exceed the trust standard rate band of £500

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.

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