Budget 2025 Income Tax Increases

In the November 2025 Budget the chancellor announced increases in income taxof 2% on dividends, interest and rental income.

The dividend tax increase is effective from April 2026 and the interest and rental income interest from April 2027.

Since covid, basic rate dividend income tax rates will have increased from 7.5% to 10.75%, which represents a 43% increase in the tax levied.