What is dividend tax?

Find out how dividend tax works and when you'll pay it. If you own shares in a company, you may get paid a share of these profits as a dividend. Dividend tax is a special type of income tax that's charged on these profits. Dividends can be a great way to generate a regular income from your investments. But, as with any income you earn, you may have to pay dividend tax. The good news is that income tax on dividends is lower than the rate you’ll pay on money from work or a pension. You can also use your tax-free dividend allowances, meaning you can earn more income from your investments before you’ll start paying tax. For more expert advice on tax planning, savings and investments visit https://ift.tt/2OpzPnx. Which?: http://www.which.co.uk Twitter: https://twitter.com/whichuk Facebook: https://ift.tt/1fAOmna