Dividend Tax Rates

UK DIVIDEND TAX RATES

Dividend Tax Rates

There are three rates of dividend tax payable, depending on the tax bands you fall in to. You won’t pay tax on the first £2,000 of dividends that you receive in the tax year.

Tax band Tax rate on dividends over £2,000

  • Basic rate 7.5%
  • Higher rate 32.5%
  • Additional rate 38.1%

Dividends that fall within your Personal Allowance do not count towards the £2,000 dividend allowance.

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