As is often the case with a Budget announcement, the devil is in the detail. The so-called dividend allowance is to be included within a taxpayers basic rate tax band, which essentially renders it useless for most business owners.
The difficulties faced by small businesses continue to be exacerbated by ill-thought out Government policies.
It's important you take appropriate advice well before the start of the next tax year to review your business structure to see if it continues to met your needs, and that of your family.
The Treasury has now clarified the position in a communication to the Institute of Chartered Accountants in England & Wales, which is shortly to be published more widely. It seems that the new GBP5,000 dividend allowance will, in fact, be included in the basic rate tax band.