Comments on: How UK dividends are taxed

By: The Investor

The Investor — Sat, 09 Jul 2011 12:16:04 +0000

You pay 25% on the dividends received once you’re into the higher rate income band.

In short: If £1000 in dividends turned up in your share broking account and you’re a higher rate taxpayer, you would pay £250 to the taxman via your self assessment form at the end of the year.

By: steve

steve — Sat, 09 Jul 2011 11:09:21 +0000

In short, if you pay dividends into the higher tax threshold, do you actually pay 32.5%, or is it similar to the lower threshold, when you don’t actually pay the 10% to anyone?

By: My Escape Plan « Simple Living in Suffolk

My Escape Plan « Simple Living in Suffolk — Wed, 04 Aug 2010 22:48:25 +0000

[...] treated as income so I don’t get taxed on top, though dividends are taxed at source in the bizarre tax structure of the [...]

By: The Investor

The Investor — Thu, 27 May 2010 19:48:58 +0000

@Aury – We’re lucky in the UK currently that the highest effective rate payable on dividends is 25%, whereas cash savings are taxed at up to 40%. Dividends are traditionally very important to UK investors, you’d fit in over here.

By: Aury (Thunderdrake)

Aury (Thunderdrake) — Thu, 27 May 2010 19:15:10 +0000

Interesting you got some good dividend tax breaks, not unlike the Canadian TFSA or the American Roth IRA. But the beauty of Dividends is all the ways you can move and protect your income, unlike say, a regular paycheck, where you’re taxed on every penny you earn. Most retirement plans aren’t exactly a getaway either, since they hit you with a similar income taxation once you hit retirement.

But I’m also a fan of dividend portfolios with blue chip stocks and similar, since it takes out all the capital speculation.

By: Jeff

Jeff — Tue, 04 May 2010 06:51:53 +0000

Godfrey, there is no withholding tax on dividends paid by companies based in UK, for both local and foreign investors. However, if you buy shares of a non-UK company, for instance Banco Standander, any dividend paid by it will be subject to tax withholding by the country where that company is based.

By: The Investor

The Investor — Fri, 19 Mar 2010 08:37:50 +0000

@Godfrey – Unfortunately I don’t know the answer to your question, which is outside my experience. I guess you’d have to ask the local and UK authorities, unless somebody else happens to read this who knows better?

By: Godfrey

Godfrey — Fri, 19 Mar 2010 04:01:28 +0000

Can I clarify something? For a HK /Singapore national living in those jurisdictions but buying a UK stock, does that mean they are also exempt from withholding tax?

By: The Investor

The Investor — Mon, 22 Feb 2010 13:16:48 +0000

Neil, unfortunately I’m not very experienced with this, beyond Dublin registered ETFs (iShares). In fact, I actively avoid overseas shares for an easy life. I may know a man who knows more, however. Watch this space!

By: Neil

Neil — Fri, 19 Feb 2010 17:58:20 +0000

I’d be interested more on the details of Luxembourg/German ETF’s and Spanish/German individual share’s with relation to Dividend Withholding Tax if this is something you are familiar with