PracticeConsultingTax system still favours married couples

Tax system still favours married couples

HMRC appeal to Lords making family businesses 'wary'

Despite HM Revenue & Customs case
against husband and wife
IT firm
Arctic Systems
going
all the
way to the House of Lords
, the tax system still favours married couples,
mainly due to the capital gains tax and inheritance tax benefits their status
brings, a new report by the Institute for Fiscal Studies has claimed

Entitled Taxation of the Family, the IFS report made this claim,
while at the same time saying HMRC was attempting to confront couples in
business with anti-avoidance rules, thus imposing ‘greater limitations’ on their
tax planning.

It further warned that the increasing tendency of ‘HMRC to seek to counter
what it considers unacceptable family planning by married couples is causing the
tax advantages of marriage to be eroded, at least for those owning their own
companies’.

The IFS said HMRC’s appeal to The House of Lords to rule against the IT
consultancy has made family firms ‘wary’.

Further reading:

Arctic row ‘will happen again’

Arctic Systems hearing ends one day early

HMRC: Arctic set-up is ‘voluntary joint taxation’

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