Article Summary
This guidance note provides an overview of the UK tax rules for dividend income received by individuals. It explains when dividends are taxable in the UK and the different tax rates that can apply. The note covers both dividends from UK companies and overseas companies. It explains how the tax treatment differs depending on whether the individual is UK resident and if so, whether UK resident and domiciled or deemed domiciled. There are also special rules for non-residents receiving UK dividends.The guidance discusses the changes to the taxation of dividends from 6 April 2016 when the dividend tax credit was abolished. It explains the new dividend nil rate band, dividend ordinary rate, dividend upper rate and dividend additional rate. The note would be useful for any tax professional looking to understand the principles of taxing dividend income and how this interacts with an individual's residence and domicile position.