is share dividend taxed?

[tonyjai]

i recall reading from somewhere that dividend is taxed at source, am i correct? what percentage is taxed or does it depend on your income, captial gains, etc?

ie: if add up to be more than personal allowance then 10% up to the basic rate. then 22% and 40% higher above?

 

[roguetrader]

Yes share dividends are taxed at source but can't help you with a rate

 

[tonyjai]

thanks for the quick reply....how can one go about in claiming it back? just like claiming extra charged income tax by goin to the inland revenue?

 

[roguetrader]

Sorry dude I would not want to mislead you, can't answer that for sure. I'd guess so but will leave that to someone who has experience in it

 

[knorrie]

Yes dividends are taxed at source at 10% gross (i.e. one ninth of the cash dividend you receive goes to the IR directly as a tax credit). Higher rate tax payers are liable for an additional 22.5% at tax return time. Sorry but you can't claim the tax credit back, even if you are a non tax payer.

http://www.direct.gov.uk/Topics/Mon...tsArticle/fs/en?CONTENT_ID=4016453&chk=PON1gU

KenN

 

[tonyjai]

many thanks knorrie-the article you provided is very useful.