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Dividends – Example 9 FA Articles

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Dividends – Example 9 FA Articles

  • This topic has 2 replies, 2 voices, and was last updated 5 years ago by Zuzie.
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  • Author
    Posts
  • October 23, 2020 at 1:35 pm #592940
    Zuzie
    Participant
    • Topics: 20
    • Replies: 23
    • ☆

    Good Day

    In this example, dividend is:
    2000@0%
    4000@32.5%

    Why are they not being split as follows:
    2000@0%
    (37.5-33.7-2) 1800@7.5%
    2200@32.5%

    Does it have something to with the saving? Please kindly explain because I don’t seem to be getting it right with dividends.

    Thanks for having a l

    October 23, 2020 at 3:59 pm #592954
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    The 2nd explanatory note at the bottom of the solution shown in the article explains why there is NO basic rate band available AFTER accounting for the £2,000 dividend income nil rate band.
    Have you worked through the lectures and study notes?

    October 26, 2020 at 3:49 pm #593175
    Zuzie
    Participant
    • Topics: 20
    • Replies: 23
    • ☆

    Ok I understand, the £2K swallows up the £1.8K

    Thanks

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