Budget 2004

Personal Taxation

Taxation of Dividends

On the gross amount^* at the rate of

• 10% for starting and basic rate taxpayers - liability covered by tax credit
  
• 32.5 % for higher rate taxpayers - equivalent to effective rate of 25% of dividend received
  
• 32.5 % (25% 2003/2004) for discretionary and accumulation and maintenance trusts - equivalent to effective rate of 25% (16.66 % 2003/2004) of dividend received

Shareholders are not entitled to repayment of tax credits
Repayments for ISAs, PEPs and charities on a restricted basis prior to 6 April 2004

* Dividend received plus tax credit

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.