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Tax ReliefUK-wide

Dividend Allowance

HM Revenue & Customs

Description

Lets you receive £500 of dividend income tax-free each year before dividend tax starts to apply — useful if you hold shares directly or run a limited company and pay yourself via dividends. This allowance has been cut sharply in recent years, down from £2,000 and even £5,000 in earlier years, so it's worth less than it used to be.

Amount

£500 tax-free dividend income per year

Deadline

Rolling / no fixed deadline

Eligibility summary

  • Available across the whole UK (England, Scotland, Wales, and Northern Ireland).
  • Open to individuals — not restricted to businesses.
Notes
Reduced from £1,000 (2023/24) to £500 (from April 2024) — historically was £2,000 and £5,000 in earlier years.

Want help with this application?

This one is usually simple enough to do yourself using the free official link below — but if you'd rather have help, we're building relationships with vetted professionals and can let you know if that becomes available.

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You can also do this yourself for free via the official source

How to apply

Applied automatically — report dividend income above the allowance via Self Assessment.

View official source

Last verified: 1 August 2026. See the footer disclaimer — this is general information, not financial or tax advice.