sajad torkamani

Updated for the Tax year 06/04/2023 – 05/04/2024.

In a nutshell

Your annual dividends allowance is £1,000. Beyond that, the tax amount depends on your Income Tax band:

Tax bandTax rate on dividends over the dividend allowanceTax rate on salaried income over the personal allowance (Comparison)
Basic rate (£12,571 – £50,270)8.75%20%
Higher rate (£50,271 – £125,140)33.75%40%
Additional rate (over £125,140)39.35%45%

Use this online tool to calculate how much dividends you may have to pay.


Tagged: Accounting

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