Do I need to pay tax if I pay out interim dividends?

Your company does not need to pay tax on the interim dividend payments it makes. 

A shareholder based in the UK typically has access to a £1,000 annual dividend tax-free allowance from UK companies in the current tax year. 


However, after the tax-free allowance has been exhausted a UK-based shareholder may have to pay income tax and the tax rate applicable will depend on the individual’s income tax band. Please be aware that different rules may apply to shareholders who are based outside of the UK.


We recommend that you seek independent advice in respect of your personal tax circumstances where you are looking to receive an interim dividend from your company.