Tax on dividends if sole income

[hk1999]

Hi, if my total income is derived from dividends (UK listed, Hong Kong Listed, Australia listed companies) will I only be taxed inline with the new dividend rules?

5,000 tax free
5,001 to 43,000 @ 7.5%
43,001 to 150,000 @ 32.5%

thank you
hk1999

[AmanSood]

that's right.

[maths]

For tax year 2016/17:

Reduce gross dividends by 11,000 personal allowance.

Allocate balance into rate bands:
up to 32,000 (7.5%)
32k to 150k (32.5%)
above 150k (38.1%)

Allocate 5k dividend allowance taxed at 0% (against dividends falling in basic rate band first).

EG
Gross Divs 171k

171k - 11k = 160k

32k falls in basic rate band (allocate 5k allowance taxed at 0% leaving 27k taxed at 7.5%)
118k falls in higher rate band (taxed at 32.5%)
10k falls in additional rate band (taxed at 38.1%)

As you refer to o/s income this income will need to be included gross (ie pre any foreign withholding taxes) with a credit where appropriate.

[hk1999]

Hi guys, thanks for the quick and concise replies, I am very grateful!

I didn't mention that I am an expat (overseas 20yrs) contemplating returning to UK, will try to remain non-resident for a few years but may succumb to the long arm of the tax man eventually.

[darthblingbling]

If the dividends are from overseas, you may want to check the DTA for each country.

If you're not actually UK resident then foreign dividends wouldn't even fall within the scope of UK tax, and UK dividends are disregarded income anyway.... i think (qualifier, don't take my words as advice!)