 Until 1993 the income tax rate payable on dividends was the same as all other income, and the ACT rate was adjusted to align it to changes in the basic rate of income tax.From April 1993, the ACT rate was cut to 22.5% while the tax rate on dividend income was set at 20%, the first time it was set at a different rate to that payable on other income (25%).The tax credit was tied to the 20% rate rather than the ACT rate of 22.5%, meaning that non-taxpayers could no longer claim a refund for the full amount that had previously been paid as ACT.