Income is taxed in a specific order with savings and dividend income taxed last.
The dividend rate is partially satisfied by a 10% tax credit given on dividends. Therefore dividends falling within the basic rate band do not suffer any additional tax.
Income Tax Rates
|Income Tax Rates||2018/19||2017/18|
|Personal allowance||Up to £11,850||Up to £11,500|
|20% basic rate on income to:||Up to £46,350||Up to £33,500|
|40% higher rate on income to||£150,000||£150,000|
|45% additional rate on income above||£150,001+||£150,001+|