Tax Talks With Greg – Tax Allowances for 2019/20

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).

Tax Allowances for 2019/20

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