FinancialHub

UK Tax Change Explainer

Tax rules keep moving and the headlines rarely explain who is actually affected. Pick a recent change and we'll lay out what changed, the headline figure, and the kind of people it tends to hit — in plain English, with the official source.

Dividend allowance cut to £500

Investing & savings · Took effect 2024/25 (allowance); rates raised for 2026/27

Headline figure
£500 (was £1,000 in 2023/24, £2,000 before that)
What changed

The tax-free dividend allowance — the amount of dividend income you can receive before any dividend tax applies — was reduced to £500. From 6 April 2026 dividends above this are taxed at 10.75% (basic), 35.75% (higher) or 39.35% (additional) rate — the basic and higher rates each rose by 2 percentage points, announced at Budget 2025.

Who it tends to affect

People holding shares or funds outside an ISA or pension, and company directors who pay themselves in dividends.

Source: GOV.UK — Tax on dividends. Tax treatment depends on your circumstances and can change — this is general information, not advice.

About these figures. General information only, not personal tax advice. Figures are headline allowances/thresholds and can change at any fiscal event; always confirm the current position on GOV.UK or with a qualified tax adviser before acting. Tax treatment depends on your individual circumstances.
Important — this is general information, not financial advice. This page covers an FCA-adjacent topic (e.g. pensions, trusts or tax planning) and is provided for education only. It does not account for your personal circumstances and is not a personal recommendation. SSAS, trust and tax decisions can have significant and hard-to-reverse consequences — before acting, get advice from an FCA-authorised adviser, a qualified tax adviser, or a STEP-qualified solicitor. Tax treatment depends on your individual circumstances and may change.

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