Currently there is no tax payable on dividend payments up to the current £5,000 limit. From April 2018, the allowance is set to be reduced to £2,000.

If dividend payments are made above the £2,000 allowance they will be taxed at 7.5% for basic-rate taxpayers, 32.5% for higher-rate taxpayers and 38.1% for additional-rate taxpayers.

Further information on dividend allowances can be found here on the gov.uk website