Brand Bitesize: Personal Savings Allowance and Dividend Allowance

In this Brand Bitesize video, we take a look at the Personal Savings Allowance and the Dividend Allowance – relevant to the CII R03 exam, but also a worthy reminder for the AF1, AF5, and R06 exams.

This video is correct as at 10 July 2026.

Personal Savings Allowance and Dividend Allowance

These are two of the most commonly misunderstood Income Tax allowances in the CII R03 Personal Taxation exam, and they regularly feature in R06 case studies and advanced financial planning exams.

In this Brand Bitesize video, we explain:

✔ What the Personal Savings Allowance is

✔ Who qualifies for the allowances

✔ How the Dividend Allowance works

✔ Why these allowances do not extend the tax bands

✔ A worked Income Tax example showing how they interact with the basic rate band

One of the biggest mistakes candidates make is assuming these allowances work in the same way as pension contributions. In reality, although both allowances are taxed at 0%, they still use up part of the individual’s Income Tax band.

Grab the resources you need!

Calculation questions are a key part of the R03 exam. Download our free taster to see how Brand Financial Training helps you work through them.

Alternatively, you can try the taster for AF5 or R06 if you’re studying for either of those exams.