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The first £2,000 of dividend income for the tax year 2021–22 benefits from a 0% rate. This £2,000 nil rate band is available to all taxpayers, regardless of whether they pay tax at the basic, higher or additional rate. However, the dividend nil rate band counts towards the basic rate and higher rate bands.
CAN you please explain this part please, taken from the finance act – However, the dividend nil rate band counts towards the basic rate and higher rate bands.
This is explained and illustrated in the lectures and Study Notes – with examples shown as to the application