A woman owns shares in a private limited company. The shares are not in an Individual Savings Account (ISA). In the 2024/25 tax year the woman receives a dividend of £5,000. Her only other source of income is her salary, and her taxable income, including the dividend, is £41,000. In 2024/25 the personal allowance is £12,570, basic rate tax band is £12,571-£50,270 and the dividend allowance is £500.
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