Dividend tax rates to increase by 1.25% from April 2022

The government have announced an increase in dividend tax rates by 1.25% from April 2022. The current dividend tax rate on basic rate taxpayers will increase from 7.5% to 8.75%, while the dividend tax rate applying to dividends above the higher rate tax threshold will increase from 32.5% to 33.75%, with those dividends over the additional rate tax threshold increasing from 38.1% to 39.35%.