TaxPersonal TaxArctic Systems wins landmark tax case

Arctic Systems wins landmark tax case

HMRC loses husband-and-wife tax battle after appeal

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.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter