Dividend income

Dividend Tax Allowance (DTA) £ 2,000. DTA does not change the amount of income in the income tax calculation. Instead, it pays 2,000% of the dividend income at 0% tax – the dividend minus rate. Like the PSA, the DTA does not deduct total revenue for tax purposes, and dividends on allowances still calculated towards the appropriate principal or higher rate bands. Dividends in excess of DTA are taxed at 7.5% (BR); 32.5% (HR); and 38.1% (AR).