Policy paper
Income Tax: dividend allowance reduction
This measure reduces the tax-free allowance for dividend income from 拢5,000 to 拢2,000.
Documents
Details
The current law for the rates of tax for dividends received by individuals is included in Chapter 2 of Part 2 Income Tax Act 2007. Section 13 sets out the main rates and section 13A provides that an amount, currently 拢5,000, is charged at a nil rate. Legislation will be introduced in Finance Bill 2017 to change the amount of dividend income that is charged at the nil rate by section 13A to 拢2,000 from tax year 2018 to 2019.
Updates to this page
Published 8 March 2017