Dividend Tax

Year Annual Pay Net Income Basic Rate Pay Higher Rate Pay Additional Rate Pay
2022-2023
2021-2022
2020-2021
2019-2020
2018-2019
2017-2018
2016-2017

What is a Dividend Tax?

When you own a share in a company then you have to pay a Dividend Tax. Dividend tax is taken from the profit distributed among shareholders.

Dividend Tax Rates

Each Year has different rates and thresholds, and you pay your Dividend Tax when your Income is over your yearly allowance.

Tax Rates for Year (2022-2023)
Basic rate: 8.75%
Higher rate: 33.75%
Additional rate: 39.35%

Tax Allowance for Year (2022-2023)
Dividend allowance: 2000

You Pay Dividend Tax according below method.
Basic Rate = 0 - 37700 (8.75%)
Higher Rate = 37700 - 150000 (33.75%)
Additional Rate = Over 150000 (39.35%)