tax calculation 2016/17

How is the tax calculated.

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I am confused with the new calculations of income, interest and dividends for the current year.  Firstly does foreign dividends eat into the 5000 allowance. If a client has pension income of 21,000, savings interest of £8552 and gross this year of dividends of £16700, they are into higher rates of tax for the year 15/16.  In this scenario for 16/17 what would the calculation be.  Presumably dividends are received this year are net so would drop to approx £15000 and would be on top of the income level.  Would they get the full £1000 interest allowance or would it drop to £500, how does this work in the pecking order of income, ? second highest.  Do you take the £5000 dividend allowance off before working out higher rates of tax?  Sorry really confused on this, help please

 

 

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By TaxSpud
14th Sep 2016 17:04

You are very brave posting that question on here as it has been done to death suggest you research previous posts before someone less polite piles into you

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By Duggimon
14th Sep 2016 17:11

Your question is a mess and I'll be annoyed if anyone answers it.

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