Arctic Systems has won its landmark tax case against HMRC, a decision that could allow 'husband-and-wife' businesses to share their tax burdens.

The decision, made this morning, has been hailed by Professional Contractors Group chairman Simon Juden as 'the best Christmas present for the UK’s small family businesses'.

The case, a Section 660A appeal, revolved around the tax regulators' objection to the way Geoff and Diana Jones, of Arctic Systems, used their salaries and dividend payments to reduce their joint tax bill.

'This is the end of three years of uncertainty for us – at one point we thought we’d lose our home,' said Geoff Jones. 'It’s been extremely stressful and we’ve been made to feel like criminals, just for running our own business. What’s more, by organising our affairs in this way, we were simply following government advice and that of our accountants.'

PCG had supported the couple in its fight through the courts. The appeal was heard in the Vice Chancellor's court, by the Chancellor of the High Court, Sir Andrew Morritt, with Lord Justices Keene and Carnwath, in November.