Richard Curtis provides an overview of how interest and dividends are taxed on individuals.
It might be thought that the taxation of interest and dividends should be fairly straightforward, but changing rates and particular rules and exemptions have somewhat muddied the waters.
This article briefly looks at the taxation of such savings income, but if this might also fall within the scope of income from employment or from a trade or profession, the rules of assessment applying to those sources will apply in priority.
Out of interest…
Many individuals will receive interest from banks, building societies or other sources and tax may sometimes be deducted at source. Income tax is charged on the full amount of interest for the tax year, whether this is from a UK or non-UK source.
The main rates of income tax – the 20% basic,
