This factsheet provides information on the new tax-free Dividend Allowance.
From April 2016 a new tax-free Dividend Allowance will replace the Dividend Tax Credit. Headline rates of dividend tax are also changing.
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.
The allowance is available to anyone who has dividend income.