Dividend tax credit - am I going mad?
I completed a tax return today with the following entries on:
Dividends 55,000 (gross)
Qualifying loan interest expense (10,000)
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.