Tax Allowances for 2019/20
We wanted to simplify the tax changes and allowances for you so here’s one easy place to look.
Dividend tax rates
There is no change to dividend tax rates in 2019/20:
- The tax-free dividend allowance is £2,000
- Basic-rate taxpayers pay 7.5% on dividends
- Higher-rate taxpayers pay 32.5% on dividends
- Additional-rate taxpayers pay 38.1% on dividends.
Pensions contributions receive full income tax relief, this means it only costs basic rate taxpayers £80 to save £100 (20 per cent tax relief) while higher rate taxpayers only need to pay £60 to save £100 (40 per cent tax relief).