As a shareholder you’ll be aware by now that the tax payable on dividends you receive on or after 6 April 2016 will be subject to the following new rules and rates:
Dividends will no longer be increased by one ninth to arrive at the taxable amount.
The first £5,000 will be tax free, but the tax-free dividends you receive will use an equal amount of your basic rate tax band.
Dividends above £5,000 will be taxed at 7.5% where your total taxable income is no more than the basic rate band (£32,000 for 2016/17).
Dividends falling into the higher rate band will be taxed at 32.5% and those in the additional rate band, i.e. where your annual taxable income exceeds £150,000, will be taxable at 38.1%
If you have any questions about this please do not hesitate to get in contact.