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Where Taxpayers and Advisers Meet

Offshore bond gains and dividends

SuperSpurs106
Posts:5
Joined:Wed Jun 15, 2022 3:25 pm
Offshore bond gains and dividends

Postby SuperSpurs106 » Wed Jun 29, 2022 8:49 am

Hi

I have a client with the following income:

Interest - £1,514
Offshore bond gains - £22,352 (bond held for 7 years)
Dividends - £21,516

I am aware that top slicing relief will not apply here as the bond gains do not take the client into higher rate.

However, my question is this...when calculating where the dividends fall, can you ever use the top sliced gain or do you always use the full gain (in the same way you use the full gain to determine whether the client retains their personal allowance or not)?

If the top sliced gain is used then some dividends will fall within the personal allowance but if that is not allowed then all of he dividends will be taxed at basic rate.

TIA

maths
Posts:8448
Joined:Wed Aug 06, 2008 3:25 pm

Re: Offshore bond gains and dividends

Postby maths » Thu Jun 30, 2022 9:03 pm

Full gain.


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