Increase in Tax on Dividends
The Government has announced a 1.25% increase in dividend tax rates from 1st April 2022.
The rates will increase to 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers and 39.35% for additional rate taxpayers. The £2,000 tax-free dividend allowance will remain.
The increase in dividend tax rates will be legislated for in the next Finance Bill.