Policy paper

Income Tax: changes to dividend taxation

From 6 April 2016 the Dividend Tax Credit will be replaced by a new Dividend Allowance in the form of a 0% tax rate on the first £5,000 of dividend income per year.

Documents

TIIN Dividends Allowance

Draft clause 2

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Draft explanatory notes clause 2

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Draft clause 3

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Draft explanatory notes clause 3

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Details

This legislation will modernise, reform and simplify dividend taxation. Only those with dividend income over £5000 per year, or those who are able to pay themselves dividends in place of wages, will pay more tax.

Published 9 December 2015
Last updated 29 June 2016 + show all updates
  1. Updated with: TIIN Dividends Allowance
  2. First published.