Dividend tax increased by 2% from April 2026
In a bitter blow for company owners, the Chancellor announced that dividend tax will rise by 2% from April 2026. This will increase the basic rate from 8.75% to 10.75%, and the higher rate from 33.75% to 35.75%, while the additional rate will remain unchanged at 39.35%. This change will further erode the tax saving from taking a low salary and dividends from your company.
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