Rates of tax on dividend income are set out in ITA 2007, Pt. 2. Section 13 sets out the dividend rates and s. 13A provides that an amount, currently £2,000, is charged at a nil rate.
Following the autumn statement 2022, HMRC have confirmed details of how the tax-free allowance for dividend income will reduce:
“This measure reduces the tax-free allowance for dividend income (the ‘Dividend Allowance’) from £2,000 to £1,000 from 6 April 2023 and then to £500 from 6 April 2024 for individuals who receive dividend income.”