Finance Act 2022

4Increase in rates of tax on dividend incomeU.K.

(1)In section 8 of ITA 2007 (which provides, among other things, for the dividend ordinary rate, dividend upper rate and dividend additional rate)—

(a)in subsection (1) (the dividend ordinary rate), for “7.5%” substitute “8.75%”,

(b)in subsection (2) (the dividend upper rate), for “32.5%” substitute “33.75%”, and

(c)in subsection (3) (the dividend additional rate), for “38.1%” substitute “39.35%”.

(2)In section 9(2) of ITA 2007 (the dividend trust rate), for “38.1%” substitute “39.35%”.

(3)The amendments made by this section have effect for the tax year 2022-23 and subsequent tax years.