Arctic Systems wins landmark tax case

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.