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.

• From: HM Revenue & Customs
• Published: 9 December 2015
• Last updated: 29 June 2016 — See all updates

Documents

TIIN Dividends Allowance

PDF, 236 KB, 4 pages

Draft clause 2

PDF, 58 KB, 3 pages

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Draft explanatory notes clause 2

PDF, 91.6 KB, 2 pages

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Draft clause 3

PDF, 103 KB, 13 pages

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Draft explanatory notes clause 3

PDF, 100 KB, 3 pages

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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. 29 June 2016

   Updated with: TIIN Dividends Allowance

2. 9 December 2015

   First published.