Tax on Dividends

The taxation of dividends has changed.

From April 2016 the notional 10% tax credit on dividends has been abolished. 

Instead a £5,000 tax-free dividend allowance has been introduced. 

Dividends above this level will be taxed at 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate) 

Dividends received by pensions and ISAs will be unaffected