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If I earn £45 k in divends, and am a high rate tax payer, if i put £16k into a cash ISA does that mean i don't need to pay tax on 16k of the dividends which will be paying the 25% on.
I get £85,000 SALARY and £45,000 dividends on top. I declare the dividend on my tax return at 45k, but if i were to out in my maximum isa cash allowance of 16k into an isa would i then reduce the tax liability on the 45k by 16k ?