4th April 2026
From 6 April 2026, dividend tax rates in the UK increase by 2 percentage points for basic‑rate and higher‑rate taxpayers. This change is confirmed in HM Treasury's published guidance and the Autumn Budget measures.
The new rates from next week are:
Basic rate: 10.75% (up from 8.75%)
Higher rate: 35.75% (up from 33.75%)
Additional rate: 39.35% (unchanged)
Dividend allowance: remains at £500
These new rates apply from the start of the 2026/27 tax year.
What this means in practice
If you receive dividends above the £500 allowance — whether as a company director, investor, or shareholder you’ll pay 2% more tax on any dividends falling in the basic or higher‑rate bands.
The government’s stated aim is to "narrow the gap" between tax on work and tax on investment income, since dividends are not subject to National Insurance.