Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect on micro-businesses of changes included in the Finance Bill in relation to dividend taxation.

At Summer Budget 2015, the Chancellor announced that the dividend tax credit will be replaced by a new £5,000 tax-free dividend allowance from April 2016, and that dividend tax rates would be amended from the same date.

A tax information and impact note setting out expected impacts was published on 9 December. This is available to view at the following address: https://www.gov.uk/government/publications/income-tax-changes-to-dividend-taxation/income-tax-changes-to-dividend-taxation.