Savings and dividend taxation bands and allowances
Previously we have written articles covering the new taxation rules surrounding savings income and dividends. Here we provide a series of scenarios to show how these interact with an individual’s personal allowance and tax rates.
Articles published in Knowledeg Direct, such as those linked below, describe some of the complexities of recent changes affecting:
- personal savings allowances,
- starting rates for tax on savings income
- dividend income allowances and tax rates
To support these articles, the brief examples show how the new rules work in practice. They demonstrate how and where these tax allowances take effect in in different scenarios, from basic and potentially nil-rate taxpayers to higher rate taxpayers.
The examples shown are illustrative only and are for consideration in conjunction with the information in the articles above. There will of course be many more potential scenarios.
For financial advisers only. Not to be relied on by consumers.
The information provided in this article is not intended to offer advice.
It is based on Old Mutual Wealth or Old Mutual International's interpretation of the relevant law and is correct at the date shown at the top of this article. While we believe this interpretation to be correct, we cannot guarantee it. We cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained in this article.