Dividend Tax Calculator
Work out the tax on dividends you draw from your property company, on top of your other income.
Calculator
Dividend Tax Calculator
Work out the tax on dividends you draw from your property company, on top of your other income.
Salary and any other non-dividend income for the year. Sets which band your dividends fall into.
The £500 dividend allowance is tax-free but still uses band space. Dividends stack on top of your other income, so the rate depends on the band they fall into. Ignores the personal-allowance taper above £100,000.
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Ask a specialist for your figure →How dividends from a property company are taxed
When you take profit out of your property company as dividends, you pay dividend tax personally, on top of the Corporation Tax the company already paid. The first £500 of dividends each year is covered by the dividend allowance and taxed at 0%, though it still uses up part of your tax band.
Above the allowance, dividends are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band. Dividends are treated as the top slice of your income, so your salary and other income are counted first, and the dividends are then taxed in whichever band they reach.
This two-layer charge, Corporation Tax then dividend tax, is why a company is not automatically cheaper than personal ownership. For a landlord who keeps profits in the company to reinvest, the deferral can be valuable; for one who needs all the income now, the combined rate can be close to personal tax.
There are usually more efficient ways to extract profit than dividends alone, for example a modest salary, pension contributions, or splitting shares with a spouse. We model the mix that leaves you with the most after tax.
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