THE £2,000 DIVIDEND ALLOWANCE

You may get a dividend payment if you own shares in a company.

You can earn some dividend income each year without paying tax.

You do not 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.

For year ending 5th April 2021, the dividend allowance is £2,000.

If you want to find out more about this allowance, please contact us for advice