In what order should I deduct management expenses?
Frequently Asked Questions
You must use the following order when deducting management expenses.
1) First deduct expenses from income that carries a notional or non-payable dividend rate tax credit of 10%. This includes scrip dividends and dividends from UK companies.
2) Then deduct from income taxable or carrying a tax credit at the lower rate of 20%. Typically this is interest from UK banks or building societies.
3) Finally deduct any excess from income taxable at the basic rate of 22%.
Other related Frequently Asked Questions
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