Dividend rates and allowance

Effective-dated UK personal dividend rates and the amount charged at the dividend nil rate.

Dividend rates from 2026–27

Reviewed · Current · Law · From 6 April 2026

£500

10.75%

35.75%

39.35%

From 2026–27, the dividend nil-rate amount is £500; the ordinary, upper, and additional rates are 10.75%, 35.75%, and 39.35%.

Finance Act 2026 increased the ordinary and upper rates by two percentage points. It did not change the additional rate. Other income determines which bands the dividend occupies.

Exceptions and branches

• ISA dividends and other special cases need separate applicability facts.

Dividend rates for 2024–25 and 2025–26

Reviewed · Historic · Law · 6 April 2024 to 5 April 2026

£500

8.75%

33.75%

39.35%

For 2024–25 and 2025–26, the dividend nil-rate amount is £500; the ordinary, upper, and additional rates are 8.75%, 33.75%, and 39.35%.

The £500 is charged at a nil rate rather than removed from income. The rate actually used depends on the individual's other income and available allowances and bands.

Exceptions and branches

• ISA dividends and other special cases need separate applicability facts.

Worked example

For both 2024–25 and 2025–26 the structured facts hold £500 at the dividend nil rate, then 8.75%, 33.75%, and 39.35%. From 2026–27 they hold £500, then 10.75%, 35.75%, and 39.35%. Which percentage applies to a person still depends on their other income and bands.

What changed

• 5 April 2026: For 2024–25 and 2025–26, the dividend nil-rate amount is £500; the ordinary, upper, and additional rates are 8.75%, 33.75%, and 39.35%.

Related concepts

• Company dividends

• Loans to participators

Linked from

• Company dividends

• Loans to participators

Sources

• Income Tax Act 2007, dividend rates — Sections 8 and 13A. Primary authority.

• Finance Act 2023 — Section 7(3) and (4). Primary authority.

• Finance Act 2026 — Section 4(1) and (2). Primary authority.

• Tax on dividends — How dividends are taxed; rates from 6 April 2026. Official guidance.

• Income Tax rates and allowances for current and previous tax years — Other allowances; dividends table for 2024–25 to 2026–27. Official guidance.

• Finance Act 2022 — Section 4(1) and (3). Primary authority.

How sources are ranked

Knowledge version: sterling-knowledge@2026-09-11.7. Last checked 11 September 2026.