Do I pay tax on my dividends?

Yes, dividends are taxable above the annual Dividend Allowance, which is £500 for 2025/26. Dividends within an ISA are always tax-free. If your dividends exceed the allowance, the rate you pay depends on your income band: 8.75% for basic-rate taxpayers, 33.75% for higher-rate taxpayers, and 39.35% for additional-rate taxpayers. Dividend income needs to be declared on your Self Assessment return. Your investment platform or company should provide a dividend certificate or statement showing what you received.