Dividend Tax Changes for the 2026/27 Tax Year

Dividend Tax Changes for the 2026/27 Tax Year

From 6 April 2026, dividend tax rates have changed. UK dividend tax rates have increased by 2 percentage points for basic and higher-rate taxpayers.

Each tax year you receive a dividend allowance meaning you only pay tax on income above this threshold. The allowance remains unchanged at £500 for the 2026/27 tax year.

Dividends received above the allowance will now be taxed at the following rates for the 2026/2027 tax year.

  • 10.75% for basic rate taxpayers

  • 35.75% for higher rate taxpayers

  • 39.35% for additional rate taxpayers

Tax treatment depends on your individual circumstances. Please contact C-Bas before taking any action as a result of the above information so we can advise the best route for you.

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