Dividends
The Government has also confirmed that, from April 2023, the 1.25% proposed reduction in rates of taxation will not proceed, meaning that the rates will stay as follows:
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the dividend ordinary rate - 8.75%
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the dividend upper rate - 33.75%
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the dividend additional rate - 39.35%
As corporation tax due on directors' overdrawn loan accounts is paid at the dividend upper rate, this will also remain at 33.75%.
These changes will apply in Scotland and Wales as the rules on dividends apply to the whole of the UK.
