02 October 2000
For 1999-2000 my client has the following income:
Net dividend 45,000
Tax credit 5,000
Salary 3,335
Personal allowance (4,335)
Taxable £49,000
Tax is chargeable on the first £28,000 at 10 per cent and the balance of £21,000 at 32.5 per cent. However, I would be interested to hear readers' views as to whether my client should receive a credit for the £5,000 tax on the dividend or whether this should in fact be restricted to a credit of 10 per cent on the net taxable income of £49,000.
For 1999-2000 my client has the following income:Net dividend 45,000
Tax credit 5,000
Salary 3,335
Personal allowance (4,335)
Taxable £49,000
Tax is chargeable on the first £28,000 at 10 per cent and the balance of £21,000 at 32.5 per cent. However, I would be interested to hear readers' views as to whether my client should receive a credit for the £5,000 tax on the dividend or whether this should in fact be restricted to a credit of 10 per cent on the net taxable income of £49,000.
Net dividend 45,000
Tax credit 5,000
Salary 3,335
Personal allowance (4,335)
Taxable £49,000
Tax is chargeable on the first £28,000 at 10 per cent and the balance of £21,000 at 32.5 per cent. However, I would be interested to hear readers' views as to whether my client should receive a credit for the £5,000 tax on the dividend or whether this should in fact be restricted to a credit of 10 per cent on the net taxable income of £49,000.
The Revenue computer automatically restricts the credit, but the tax officer I queried this with seemed uncertain as to whether this was in fact correct.
(Query T15,697) JRL.
