Dividend tax credit - am I going mad?

I completed a tax return today with the following entries on:

Salary 6,000
Dividends 55,000 (gross)
Qualifying loan interest expense (10,000)
STI 51,000
Personal allowance (6,475)
Taxable income 44,525

The software calculated the tax borne correctly, but then only allowed around 4,400 of the dividend tax credit to be relieved against the liability!

Am I correct to assume this is a glitch and that the full 5,500 should be deducted to arrive at the liability?

I look forward to hearing from fellow members about this, thanks on advance for your comments.

There are 13 comments. Login or register to view them.

It is correct

Marion Hayes |

I was slightly confusd by Marion's post

BKD's picture

The dividend tax credit is non-refundable

Discountants |
Discountants's picture

Sorry BKD

Marion Hayes |

This doesn't seem fair though

dbowleracca |
dbowleracca's picture

It is correct

Marion Hayes |

Yes, we're all quite sure!

BKD's picture

Thanks for this

dbowleracca |
dbowleracca's picture

I remember

pawncob |
pawncob's picture

Maybe this helps

cathygrimmer |
cathygrimmer's picture


adam.arca |

Well Said Adam

Malcolm Veall |
Malcolm Veall's picture

Can unused "Qualifying loan interest expense" be taken forward

ringi |