FAQs - Management Expenses

Q. In what order should I deduct management expenses?

A. 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%.