Investment Income: Taxation

(asked on 10th March 2022) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government how many taxpayers paid tax on dividends at the rate of (1) 7.5 per cent, (2) 32.5 per cent, and (3) 38.1 per cent, in the last year for which figures were available; and what was the amount paid by each category of taxpayer.


Answered by
Baroness Penn Portrait
Baroness Penn
Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 22nd March 2022

From current estimates, in the tax year 2021-22 there were 1,440,000 taxpayers who paid tax on dividends at the rate of 7.5 per cent with the total liabilities at this rate equalling £2 billion. There were 615,000 taxpayers who paid tax on dividends at the rate of 32.5 per cent with total liabilities at this rate equalling £4.89 billion. There were 135,000 taxpayers who paid tax on dividends at the rate of 38.1 per cent with the total liabilities at this rate equalling £5.25 billion.

The estimates for the number of individuals are based on the tax rate at which the last pound of dividend income is taxed. Some individuals may also have dividend income taxed at different rates. For liabilities, this has been totalled at the rate at which the tax was paid.

These estimates are based on the Survey of Personal Incomes and projected forward in line with the Autumn Budget forecast.

Reticulating Splines