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Dividend tax changes from April 2026

Dividend tax changes from April 2026

From 6 April 2026, dividend tax rates in the UK are increasing, with the basic rate rising to 10.75% and the higher rate to 35.75%, while the tax-free dividend allowance remains at £500. These changes mean that taking income as dividends will become less tax-efficient for many company directors and business owners, making it important to review your current income structure and tax planning approach.