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Paul Cassidy's avatar

She’s also repeating the old canard that the rate of tax paid on dividends is lower than the income tax rate and that the gap should be removed, completely ignoring the fact that one’s profits have already been taxed at 25% prior to being distributed, thus making the whole tax charge much higher than standard income tax.

She also wants the already much attenuated £500 dividend allowance cancelled, thus causing a large number of mainly elderly people who have a small quantity of dividends to have to start filing tax returns in order to pay an utterly piffling amount of tax. She doesn’t realise that this is effectively (and it was more effective when it was £2,000) a de minimis allowance precisely to avoid this sort of nonsense.

She is indeed either extremely stupid or unbelievably ignorant. But then I think we already knew that.

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Francis Turner's avatar

Correct me if I'm wrong but isn't there a special act of parliament about this that is named after the prime minister that happens to exempt him personally form such taxes?

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