Arctic Systems loses landmark test case

Arctic Systems lost its landmark 'husband and wife' tax case at the High Court this morning.

Link: Husband and wife tax case decision expected

Mr Justice Park ruled in favour of the Revenue in a decision that could cost small family-owned businesses nationally up to £1bn, accountants say.

The case concerns the tax treatment of dividends paid to spouses in family-owned businesses. It affects the rate at which dividends paid to a lower-earning spouse should be taxed at; at their own marginal rate or at the rate of the main earner.