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Budget 2009 - Personal Taxation
Taxation of Dividends
| Actual rate on the gross amount1 | Effective rate on dividend received | |
|---|---|---|
| Savings rate taxpayers | 10% | nil |
| Basic rate taxpayers | 10% | nil |
| Higher rate taxpayers | 32.5% | 25% |
| Discretionary trusts | 32.5%2 | 25% |
- Shareholders are not entitled to repayment of tax credits
- Availability of 10% tax credit on dividends from overseas companies depends on certain conditions.
Certain distributions from real estate investment trusts are treated as UK property income rather than dividend income (unless recipient resident in a country with a tax treaty with the UK).
1 Dividend received plus tax credit.
2 Unless income does not exceed £1,000.
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