Dividend allowance - ISA & GIA

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#1

Hi all - happy new year! Let’s hope 2020 is better than 2021 eh?!

Just wondering, let’s say I get £2k in dividends from the stocks in my ISA, and then get another £2k in dividends from my GIA.

Do the ISA’s tax-free earnings still contribute to my overall dividend allowance?

I.e. Is my taxable dividend income £4k or £2k / Is my tax liability £0 or £2k?

Thanks!

#2

Everything, including the dividends in the ISA is tax free so no tax to pay and it does not count towards your limit.

In the GIA you have a limit of £2,000 so if you’re at or under that limit you have nothing to pay there either, so £0 liability. If you had £2,500 in your GIA, then tax would be payable on £500, being £2,500 received - £2,000 allowance.

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