Dividendsandinterest

Dividend income from shares and interest earned on savings are taxed separately from earnings, each with their own allowances and rates that sit alongside the main income tax bands. How much tax you pay depends on your total income, the type of account or investment, and whether the income is received personally or through a company.

For business owners taking a mix of salary and dividends, and for savers holding investments outside tax-efficient wrappers, understanding how these income types interact with your overall tax position is important for planning. Because allowances and rates are reviewed at each Budget, we recommend checking your specific position with us rather than relying on previous years' figures.