If you receive Dividends or made Capital Gains, you must submit tax return to HMRC and pay an amount of tax on that income. You may receive a dividend payment if you own shares in a company.
You can earn some Dividend income each year without paying tax.
You do not have to pay tax on any Dividend income that falls within your Personal Allowance (the amount of income you can earn each year without paying tax).
You also get a Dividend allowance each year. You only pay tax on any Dividend income above the Dividend allowance.
|Tax year||Dividend allowance|
|6 April 2020 to 5 April 2021||£2,000|
|6 April 2019 to 5 April 2020||£2,000|
|6 April 2018 to 5 April 2019||£2,000|
|6 April 2017 to 5 April 2018||£5,000|
|6 April 2016 to 5 April 2017||£5,000|
|Band||Tax rate on dividends over the allowance|