Headline rates of dividend tax are changing

At the summer Budget 2015, Chancellor George Osborne revealed a shake-up in the way dividend income is taxed. The notional 10% tax credit on dividends is to be abolished and will be replaced by a new tax-free Dividend Allowance from April this year. The Dividend Allowance means that you won’t have to pay tax on the first £5,000 of your dividend income, no matter what non-dividend income you have, and is available to anyone who has dividend income. Read more →