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Parental settlement and £100 limit

if income exceeds £100 is the parent taxed on the whole amount?

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Good afternoon,

The 2 minor children of a client have received over the £100 limit in dividend income from client's own company. I understand the income is taxed on the parent, but is it after deducting £100 each? I thought it was a whole or nothing exemption but I have read different advice. Would someone please confirm?

Thank you

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Replying to mrme89:
By Chipette
29th Oct 2017 14:25

Thanks mrme89 that was my understanding - it seems some interpret the legislation as "taxed on income in excess of £100".

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