Income Tax Act 2007 section 13

Income charged at the dividend ordinary, dividend upper and dividend additional rates: individuals

Section 13 sets out the special tax rates that apply to dividend income received by individuals, replacing the standard basic, higher and additional rates with corresponding dividend-specific rates.

• Dividend income that falls within the basic rate band is charged at the dividend ordinary rate instead of the basic rate
• Dividend income that falls within the higher rate band is charged at the dividend upper rate instead of the higher rate
• Dividend income that falls within the additional rate band is charged at the dividend additional rate instead of the additional rate
• Scottish and Welsh taxpayers are subject to the same dividend rates, with their income bands determined as if standard UK rates applied