Higher rate taxpayer dividend tax
4 Mar 2018 Discover how the UK 2016 Dividend Tax Allowance rules are reducing the basic rate taxpayer, higher rate taxpayer, or even an additional rate taxpayer. Dividend income which is received in the higher rate tax band 5 May 2016 Basic rate taxpayers would have paid no additional income tax on dividends. The higher rate was set at 25% of the £80 and the additional rate The dividend of £18,000 exceeds the remaining personal allowance, so £8,650 of the dividend will be subject to higher rate tax. The dividend allowance covers £2,000 of this leaving £6,650 subject to tax at the higher tax rate. The total tax due on the dividend of £18,000 would therefore be £2,161.25 (being 32.5% of £6,650).