What's changed?
In the Budget the Chancellor announced an increase on the rate of tax payable on dividends by 2% on the current rate of 8.75%.
The Income After Death table in Proclaim accommodates a calculation of the basic rate of tax on the gross or net amount entered, and so will require an amendment to a routine to accommodate this change effective from the 6th April 2026.
How to make the change
Follow these steps to amend your Proclaim system;
Go to Database Maintenance
Ensure you are in the case type for Probate
Find the existing maths item Income After Death - tax calc
Make a safe copy of this maths field
In the original field, replace the existing maths with the following;
v2026 = DAYS-FROM-TODAY( "06/04/2026" )
v2022 = DAYS-FROM-TODAY( "06/04/2022" )
IF {Income Date.Date} <> "" THEN
vItemDate = DAYS-FROM-TODAY( {Income Date.Date} )
ELSE
vItemDate = 0
END
#
IF v2026 <= vItemDate THEN
vNet = 0.1075
vGross = 8.30232558139535
ELSEIF v2022 <= vItemDate THEN
vNet = 0.0875
vGross = 10.42857142857143
ELSE
vNet = 0.075
vGross = 12.33333333333333
END
IF {Income Gross Value.Value} <> 0 AND {Income after death - Net.Value} = 0 THEN
IF {Income Tax Code.Code} = "A" OR {Income Tax Code.Code} = "B" OR {Income Tax Code.Code} = "D" OR {Income Tax Code.Code} = "E" THEN
vTax = {Income Gross Value.Value} * 0.2
vNet = {Income Gross Value.Value} - vTax
PUT( vTax , {Income Tax Value.Value} )
PUT( vNet , {Income after death - Net.Value} )
PUT( "G" , {Income after death - received net/gross.Code} )
ELSEIF {Income Tax Code.Code} = "C" OR {Income Tax Code.Code} = "F" THEN
vTax = {Income Gross Value.Value} * vNet
vNet = {Income Gross Value.Value} - vTax
PUT( vTax , {Income Tax Value.Value} )
PUT( vNet , {Income after death - Net.Value} )
PUT( "G" , {Income after death - received net/gross.Code} )
END
ELSEIF {Income Gross Value.Value} = 0 AND {Income after death - Net.Value} <> 0 THEN
IF {Income Tax Code.Code} = "A" OR {Income Tax Code.Code} = "B" OR {Income Tax Code.Code} = "D" OR {Income Tax Code.Code} = "E" THEN
vTax = {Income after death - Net.Value} / 4
vGross = vTax + {Income after death - Net.Value}
PUT( vGross , {Income Gross Value.Value} )
PUT( vTax , {Income Tax Value.Value} )
PUT( "N" , {Income after death - received net/gross.Code} )
ELSEIF {Income Tax Code.Code} = "C" OR {Income Tax Code.Code} = "F" THEN
vTax = {Income after death - Net.Value} / vGross
vGross = vTax + {Income after death - Net.Value}
PUT( vGross , {Income Gross Value.Value} )
PUT( vTax , {Income Tax Value.Value} )
PUT( "N" , {Income after death - received net/gross.Code} )
END
END
What happens next?
Nothing else needs to be done now - from the 6th April 2026 when users start entering details of dividends received into the Income After Death table and calculate the tax payable Proclaim will differentiate between the current rate and new rate according to the date the income was received as it's added to this table.
The following rates will be applied for entries in the date ranges;
7.5% for dividends before 6 April 2022
8.75% for dividends from 6 April 2022 to 5 April 2026
10.75% for dividends from 6 April 2026 onwards
Any questions?
If you have any queries over this update please do not hesitate to reach out to our support team.