Reverse the April 2026 dividend tax rise and review its impact on SMEs
We ask the Government to reverse the April 2026 2% dividend tax rise and review its impact on SMEs. For example,many small business owners use a salary-plus-dividend structure, meaning this rise increases their overall tax burden and adds pressure to founders/SMEs who are vital to UK economic growth
Signatures
39
signatures
Government response threshold (10,000) · 39/10,000
Debate threshold (100,000) · 39/100,000
- 14 JAN 2026Petition opened for signaturesCreated by Sarah Beard
Background
We are concerned the April 2026 dividend tax rise places additional pressure on SMEs and founders already facing higher costs, tight margins and limited support. For many small businesses, dividends are part of how cash flow is managed, income is paid, reinvestment is funded and stability is maintained. Increasing the tax burden reduces the capital available for hiring, growth and resilience, ultimately discouraging entrepreneurship and weakening the UK’s small-business economy.