RE: Anyone Use Interactive Investor as a Broker?9 Jan 2021 07:57
Regards Dividends and the tax on them. Companies have to issue dividends in the UK with a 20% Withholding Tax on them. In the UK you used to be able to reclaim dividend withholding tax, currently charged at 20%, up until Gordon Brown's Budget in 1997. Gordon Brown stopped non tax payers from reclaiming the 20% and in 2004 extended this to ISAs so that ISAs are tax free except dividends.
Any income from Dividends, in excess of the dividend allowance, currently £2000, gets added to your income and will be taxed again if your total earnings exceed the tax allowance.
You get better treatment from interest paid as you can reclaim the tax but only get a £1,000 allowance.