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What is the Dividend Allowance?

From 6 April 2016 a new tax-free Dividend Allowance will replace the Dividend Tax Credit.

The Dividend Allowance is £5,000 and means that you won’t have to pay tax on the first £5,000 of your dividend income per tax year. Tax will be due on any dividends you receive over £5,000 per tax year.

See the government’s factsheet for further information: www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet

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