Budget 2021: dividend rate rises by 1.25%
In the Budget, the rates for dividend tax rises were confirmed from the new tax year in April 2022 to fund the social care levy, announced last month
This measure increases the rates of income tax payable on dividend income by 1.25%. The dividend ordinary rate will be set at 8.75%, the dividend upper rate will be 33.75% and the dividend additional rate will be 39.35%. The dividend trust rate will also increase to 39.35% to remain in line with the dividend additional rate.