Daily Archives: April 20, 2016

The new UK dividend tax rules – £5000 tax free and no more dividend tax credits 3

The rules surrounding UK dividends have always mystified many people. The artificial dividend tax credit of 10% has caused confusion over the years and if you want to see why, just look at the post I did on the old dividend tax rules. But thankfully, the taxation of UK dividends changed as of the 2016/2017 tax year. The new rules which take effect as of 6 April 2016 are as follows: Each individual has a £5,000 tax-free dividend allowance. This means that no tax is paid on any dividend income earned below £5,000. If dividend income exceeds £5,000, the rate of tax they will need to pay on the amount […]