Dividend Tax Rates are Increasing

Company directors & shareholders — dividend tax rates are increasing from 6 April 2026

The Government has confirmed a 2% increase to dividend tax rates from the start of the 2026/27 tax year.

If you were already planning to take dividends, it may be worth considering whether they can be paid before 6 April 2026 to benefit from the current lower tax rates — subject to sufficient profits and company cashflow.

Remember: dividends must be properly declared and supported with the correct documentation (board minutes and dividend vouchers).

If you’d like us to calculate the potential tax saving for your situation, get in touch.