Policy paper
Increase of the rates of Income Tax applicable to dividend income
This tax information and impact note sets out the increased rates of Income Tax applicable to dividend income.
Documents
Details
This measure increases the rates of Income Tax applicable to dividend income by 1.25%. The dividend ordinary rate will be set at 8.75%, the dividend upper rate will be set at 33.75% and the dividend additional rate will be set at 39.35%. The dividend trust rate will also increase to 39.35% to remain in line with the dividend additional rate.
The changes will apply UK-wide and will take effect from 6 April 2022.
Published 27 October 2021