Couples tax legal battle confirmed
The Inland Revenue will be dragged in front of special commissioners by a small business owner who was handed a £42,000 retrospective bill under the controversial husband and wife tax, Section 660A.
Link: Legal battle looms over couples tax
Geoff Jones, who runs a small IT consulting business, Arctic Systems, will take the case in front of the courts in the new year, and will be supported by the Professional Contractors Group. The case could have huge implications for thousands of similar businesses.
‘We’re fighting this investigation, not only for ourselves, but because otherwise countless other family businesses will face being ruined,’ said Jones. ‘It’s high time it was concluded in favour of people’s choice to thrive and manage their business affairs efficiently.’
Accountancy Age revealed in September that the case would result in a court battle, with Arctic Systems being the test case. At the time, Dennis Mansbridge of Qdos Consulting, one of the main tax advisers to the PCG, said: ‘We have had counsel opinion. The Revenue seems to have a very blinkered approach,’ before going on to say that he felt Jones’ chances ‘were very good’.
PCG chairman Simon Griffiths said: ‘We feel that the Inland Revenue is wrong both morally and in law to seek to apply the settlements legislation in the way that it is attempting to in this case.’
A date for the hearing will be set early in the new year.