Dividend allowance down to £2,000

06 April 2018

In 2017/18 the first £5,000 of dividends are chargeable to tax at 0% (the Dividend Allowance). From 6 April 2018 the Dividend Allowance is reduced to £2,000. Dividends received above the allowance are taxed at the following rates:

         7.5% for basic rate taxpayers

         32.5% for higher rate taxpayers

         38.1% for additional rate taxpayers.

Internet links: GOV.UK spring statement 2018 GOV.SCOT Scottish income tax