Glossary · Tax
Dividend Allowance
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Definition: The amount of dividend income each tax year that is taxed at 0%. £500 from April 2024, reduced from £1,000 the year before.
Above £500, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate) and 39.35% (additional rate). Dividends inside an ISA or pension are tax-free and outside this regime entirely.
Primary source: gov.uk/tax-on-dividends