Dividend Tax Rates Have Increased: Profit Extraction Strategies for Company Directors in 2026/27

Dividend tax has become noticeably more expensive for company directors. The dividend allowance is now just £500, compared with £5,000 in 2016/17, and dividend tax rates have risen again for 2026/27. For directors taking regular dividends from a limited company, the combined effect of a smaller allowance, higher tax rates and frozen income thresholds means […]