Dividend allowance Tax-free dividends per year
£500 Basic rate (within £12,571–£50,270) On dividends after the £500 allowance
8.75% Higher rate (£50,271–£125,140) Where dividends fall in the higher band
33.75% Additional rate (above £125,140) Dividends in the additional-rate band
39.35% Self Assessment trigger Or any tax owed on dividends
£500+
Dividends in ISAs / SIPPs / pensions are entirely tax-free. Allowance was £2,000 in 2022/23.