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Dividend tax cut

A couple of weeks ago the previous Chancellor announced that the dividends tax rates are being reversed and will remain at the same rate in 2023-24. However, on 17 November the new Chancellor Jeremy Hunt announced that there would be some changes to the dividend allowance from April 2023. This change will see the dividend allowance going from £2,000 to £1,000. There will be further changes from April 2024, which will see the allowance set at £500.

What is dividend allowance?

Dividends are when profits are taken out of a company. The dividend allowance allows taxpayers a dividends allowance of £2,000 without it being taxable.


Amount taxable

Dividend allowance


Basic rate band



Higher rate band



Additional rate band




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