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Tutor, would like to get a clarification on question number 4 practical question. I was attempting it and when i checked the answer, i got a bit confused. The dividend nil rate band is 5,000 regardless of the income of a taxpayer, where did you get that ‘5,525’ charges, wasn’t it not supposed to be nil? Thank you in advance
It is clearly a typing update error from last year – I thought the notes now showed the correct figure which is of course nil and that should then also update the total tax figure as well – apologies for confusion.
Hi,
In relation to this question I am confused. I thought it was also NRB and zero but then I convinced myself that I got this wrong because they are additional tax band payer where it is then not applicable?
Can you confirm for me whether the NRB is applicable on the Total income assessed that they will be an additional rate payer or whether because when I got to dividend income they were still paying the Higher rate band that they got the £5000 NRB allowance.
Many thanks
The dividend income nil rate band is available for all taxpayers irrespective of whether basic, higher or additional rate taxpayer whereas the savings income nil rate band depends upon the taxpayer’s marginal rate with additional rate taxpayers getting NO nil rate band
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