Advisers should not read anything into the fact that the Arctic Systems hearing ended early at the House of Lords today.
The appeal hearing at the House of Lords was scheduled for three days, however, the five law lords had heard enough by the middle of day two.
The case revolves around Geoff and Diana Jones' business Arctic Systems. HM Revenue & Customs is fighting the married couple through the courts over the way the couple split their salaries and dividend earned from their business.
Chris Bryce, director of the Professional Contractors' Group , warned against reading anything into the quick conclusion of the final leg of the tax battle through the courts.
'I'm reasonably positive about the way the outcome will go, but can't read into the hearing finishing early,' said Bryce.
Tax expert Anne Redston said the law lords were 'well informed' about the ins and outs of the case, which sped the process up.
Redston said that if the judges decide their tax affairs were set up in advance and designed to give something to the wife/husband, the law lords might still add that the couple were exempt of tax under gift exemption rules.
'This would in effect narrow the tax arrangement rules, which HMRC could consider a partial victory, but allow husband and wife businesses with more beneficial tax treatment as fought for by the Jones,' he said.
The result is not expected to be known for six to eight weeks.
Further reading:
HMRC: Arctic set-up is 'voluntary joint taxation'
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