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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13919
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Does personal allowance come second to investment income allthough

Customer Question

Does personal allowance come second to investment income
allthough i havent used up all of my personal allowance I still have to pay £90 of dividends from share holdings is this correct
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
Unless you are a higher rate taxpayer (which does not seem to be the case if you have unused personal allowances) then your investment income (dividends) would already have been subject to 10% credit so no further tax would be due.
This would apply to genuine investment dividend payouts as those as a company director/shareholder.
But you should not have a tax bill, just a credit of tax paid which is non refundable (as notional tax)
Thanks
Sam