Dividend allowance is just 500 pounds in 2026/27. Rates are 8.75%, 33.75% and 39.35%. Full guide with director salary vs dividend comparison and worked examples.
You have used all GBP 20,000 of ISA allowance and still have cash to invest. Here is how a taxable General Investment Account is taxed in 2026/27 and how to keep the bill low.
When two people run a business, the structure decides how profit is taxed. Compare a general partnership using two GBP 12,570 allowances against a limited company paying Corporation Tax at 19% to 25% and dividends taxed from 10.75%.
Dividend tax rates and the £500 allowance for 2026/27 explained. Ltd company director salary+dividend planning, ISA sheltering, and Self Assessment reporting.
