Since 5 April 2013 the additional rate of income tax payable on income over £150,000 is reduced from 50% to 45%.
Many earners in this tax bracket receive their income as dividends. A 40% tax payer pays an effective rate of tax on the net dividend of 25%
Because of the 5% reduction mentioned above a 45% taxpayer (receiving gross income above £150,000) pays a rate of tax reduced from 36.1…
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