Husband and wife tax faces axe
The notorious Section 660 'husband and wife tax', which could endanger up to one million family-owned businesses, looks set to be reviewed after months of intense pressure on the Inland Revenue.
A group of experts, including representatives of the ICAEW, the Chartered institute of Taxation and the Federation of Small Businesses, met with the Revenue last week to present their opposition to the ‘husband and wife tax’, known as Section 660. The result of the meeting will be published later this week.
The controversy arose last April, when the plight of a husband and wife team, hit by unexpected demands for six years of back-tax on dividends they had taken from their businesses, became known.
Although the experts say they have never seen this particular treatment of family businesses until recently, the Revenue maintains it has had the same tax treatment for section 660 for decades.