One option would be to eliminate taxes on the first $1,000 or $3,000 in dividend income.

Trading revenue was $674,000, while dividend income reached $1.6 million.

Under current law, corporations that buy stock in other companies get a tax break on the dividend income they receive.

This will be a proportion of the amount shown under total dividend income.

In 2008, 2009 and 2010, there will be no tax on that dividend income.

Take a married couple with about £1.6 million invested in the stock market living off dividend income of slightly under £80,000 a year.

The 2003 tax cut on dividend income provided an additional incentive to buy.

Put another way, the tax credit represents 10 per cent of the dividend income.

If you normally complete a tax return you'll need to show the dividend income on it.

Suppose further that the dividend income from the portfolio is 4 percent, or $40,000 a year.