Dividend Tax Has Changed - Is Your Profit Extraction Strategy Ready?

In the Budget, the government confirmed a 2% rise in dividend tax rates for basic-rate and higher-rate taxpayers from 6 April 2026.

That means the same “salary + dividends” routine may now produce less net income — year after year.

This guide helps you quickly sense-check whether you should:

• keep extracting the same way,

• change who receives dividends,

• or shift some extraction into pensions and reinvestment.