The taxman has issued ‘confusing’ guidance on husband and wife tax rules
following the Arctic Systems case, according to advisers.
HM Revenue & Customs today issued
settlements tax legislation in light of losing its battle against
Geoff and Diana Jones of Arctic Systems.
But advisers were expecting HMRC to reveal a consultation document in which
the taxman would effectively reverse the decision reached on Arctic, as had been
promised by the Treasury.
Instead, HMRC’s guidance is interim, taking into account the Lords’ ruling
but not outlining how it will reverse that decision – which is still expected.
Anne Redston, visiting professor at Kings College London, said while it was
important for HMRC to update its guidance after losing the case, people would be
confused about the contents of the latest document.
‘This guidance is confusing, when we were expecting a consultation doc, it
would have at least been helpful of HMRC to say “this isn’t what you’re
expecting”,’ said Redston.
The Arctic Systems tax battle revolved around how the husband and wife
business split their incomes and dividends to place themselves in an
advantageous tax position.
In October’s pre-Budget report the
government said it would ‘shortly’ issue guidance on reversing the effect of the
House of Lords’ Arctic Systems judgment.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states