Part 2

Basic provisions
Chapter 2

Rates at which income tax is charged

Income charged at particular rates

Income charged at the dividend ordinary and dividend upper rates: individuals
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1
Income tax is charged at the dividend ordinary rate on an individual’s income which—
a
is dividend income,
b
would otherwise be charged at the starting or basic rate, and
c
is not relevant foreign income charged in accordance with section 832 of ITTOIA 2005 (relevant foreign income charged on the remittance basis).
2
Income tax is charged at the dividend upper rate on an individual’s income which—
a
is dividend income, and
b
would otherwise be charged at the higher rate.
3
Subsections (1) and (2) are subject to any provisions of the Income Tax Acts (apart from section 10) which provide for income to be charged at different rates of income tax in some circumstances.
4
Section 16 has effect for determining the extent to which an individual’s dividend income would otherwise be charged at the starting, basic or higher rate.