Dividend Tax is a type of tax in which you, as a shareholder, are taxed on your share of the profits your company has generated during a fiscal year.

You are exempt from Dividend Tax for your dividend up to £2,000 per year.

Dividend Tax rates are determined according to your net income:

You are exempt from Dividend Tax for your dividend up to £2,000 per year

The basic rate is paid on taxable income over the Personal Allowance to £37,700.

The higher rate is paid on taxable income over the Personal Allowance from £37,701 to £150,000.

The additional rate is paid on taxable income over £150,000.

Under UK law, all shareholders who receive a net dividend above the exemption amount from a company registered in the United Kingdom are liable to pay Dividend Tax.