taxation of dividends

[howareya]

I am a top rate payer of tax. If i receive dividends They are taxed at 42% but do i pay an extra 2% on top of that- health levy ??

 

[WizardDr]

Yes

Although if you were PAYE, the Revnue omitted for a number of years to collect the levy.

If you were / are self employed you were always screwed for this.

You are assessed to the actual dividend plus withholding tax;
You can use DWT as a tax credit.



Clearly demonstrates the understanding of Equities by Government. Borders on NIL.

 

[howareya]

Is there any other hit on my hard earned dividends??

 

[ClubMan]

Clearly demonstrates the understanding of Equities by Government. Borders on NIL.

Why should dividends not be assessable for income tax the same as any other income stream?!

 

[WizardDr]

Six points:

1. Debt interest is deductible for a company;
2. Dividend payments are not.
3. No underlying tax credit though CT rate is 12.5%
4. DWT is deducted usually well in advance of when tax is due by dividend recipient.
5. In addition the levies could be considered an anomaly;
6. PAYE people were not levied up to recently.

How does this look equitable taking into account Company and Shareholder?