Reporting investment and share income via Self Assessment

Millions of people in the UK own shares or have other investments such as ISAs. When compared to other equity assets, they can offer a good or excellent return on investment, especially over longer periods. If…

5 Minute Read

Last Updated: 26th September 2023

Millions of people in the UK own shares or have other investments such as ISAs. When compared to other equity assets, they can offer a good or excellent return on investment, especially over longer periods.

If you’ve recently received share dividend payments or money from selling shares, you may be wondering if either is taxable income and if so, how you report it to HMRC. Read on to find out.


You must fill out and file a Self Assessment tax return (SA100) if you have untaxed income, which includes income from savings, investments and dividends. Self Assessment is the scheme that HMRC uses to collect Income Tax.

If you have a relatively modest income and modest returns from share dividends or other investments, you may have to pay little or no Income Tax on them. The standard Personal Allowance is £12,570 (if you earn less than £100,000 a year) and you don’t pay tax until your total income is higher than this figure.


You do not pay tax on any dividend income that’s falls within your Personal Allowance. You also get a Dividend Allowance of £1,000 and only pay tax on dividend income above that figure. So, if you had no other income, you could earn dividend payments worth up to £14,570 a year and pay no tax.

The amount of tax you pay on dividends above the dividend allowance is determined by your Income Tax band.

Tax bandTax rate on dividends above the allowance
Basic rate 8.25%
Higher rate 33.75%
Additional rate39.35%

The above applies to England and Wales; Income Tax rates are different in Scotland. As stated on “To work out your tax band, add your total dividend income to your other income. You may pay tax at more than one rate.”

Need to know!

  • Interest and dividends received in an ISA are free from tax and do not need to be included in your Self Assessment tax return.


If you need to file a Self Assessment tax return to report income from investments or shares, you do so after the tax year ends on 5 April, before 5 October. You then have until midnight on 31 January to file your Self Assessment tax return online (although it’s best to do it earlier).

It’s relatively quick and easy to register online for Self Assessment. When registering you’ll need to give your:

  • National Insurance number
  • full name (and any previous names)
  • current address (and when you moved in)
  • date of birth
  • gender
  • phone number
  • email address and
  • whether you’ve registered previously for Self Assessment.

HMRC will then create an account for you and you’ll receive a letter with your Unique Taxpayer Reference (UTR) number within 10 days (21 if you’re based overseas). You’ll need your UTR to fill out and file your Self Assessment tax return. You’ll also then receive another letter with an account activation code. Once activated, you can file your tax return at any time before the deadline.

Need to know!

  • In addition to the SA100 tax return, you’ll need to fill out an SA101, which is a supplementary page used to record less common types of income, including that from stocks and shares.


You may need to pay Capital Gains Tax if you make a profit (a “gain”) from selling (“disposing of”):

  • shares that aren’t in an ISA
  • units in a unit trust
  • some bonds (not Premium Bonds or Qualifying Corporate Bonds).

You must work out your gain (ie the difference between buying and selling price) to find out whether Capital Gains Tax is payable (your total gains must exceed your Capital Gains Tax allowance for the tax year, which is £6,000 for for the 2023/24 tax year.

Need to know!

Trusted by over 20,000 subscribers

You don't need to be an expert to complete your self assessment tax return.

Find Out More

Blog content is for information purposes and over time may become outdated, although we do strive to keep it current. It's written to help you understand your Tax's and is not to be relied upon as professional accounting, tax and legal advice due to differences in everyone's circumstances. For additional help please contact our support team or HMRC.

5 Excellent Reasons to Choose Us

Discover how to make tax returns a doddle...

Find out more

HMRC crackdown to target eBay, Amazon, Airbnb, Fiverr, Uber, Deliveroo and Etsy side hustle income earners

05 Dec 2023

About a quarter of UK adults are believed to have a “side hustle”, whether it’s a secondary job or side business that brings in…

How to spot a Self Assessment tax scam

30 Nov 2023

The threat of being targeted by scammers seems ever present these days. Many of us are frequently targeted, usually by bogus, fraudulent and indeed…

Can sole traders claim tax expenses for Christmas nights out and customer gifts?

09 Nov 2023

Come November and many of us start to think about Christmas. When you’re self-employed, a certain panic can arise over whether you’ll manage to…

How GoSimpleTax Works


Simply register for free with your full name and email address.

Select Your Income

Select the income you receive and follow the hints and tips for potential tax savings.

Validate Your Information

Validate your personal information and submit directly to HMRC to get confirmation in just seconds.


Work Anywhere, With Any Device

Gone are the days of fretting over a calculator surrounded by scraps of paper at the eleventh hour.

GoSimpleTax’s tax return software uses the information you upload in real time to calculate your income and expenditure, working out the tax you owe and sending you helpful notifications when there’s the possibility of a mistake.

Start your free trial

"The software is intuitive and proved very easy to navigate. I found the whole process refreshingly simple. I saved a lot of money too!"

Steve J.

Ordained Presbyter

"Easy to use and value for money. Everything you need to do your tax."

Gordon J.

Self Employed

"It fills in all the forms and sends them to the Inland Revenue. Not expensive either. Takes the stress out of doing your tax return online."

Ross G.

Team Rector

5 reasons to use GoSimpleTax >