Arctic case concludes
The case hinges on the HMRC's interpretation of a specific piece of legislation, Section 660, which, HMRC claims means that dividend paid to one party (in this case Mrs Jones) should really be treated as belonging to and taxed at the higher rate of her partner.
The outcome of the House of Lords case could have significant financial implications for thousands of similarly structured companies.
Further information
Hardhatter's sister site, Shout99 has followed this case closely and all developments relating to Section 660. You can read more about the background and the issues at stake in Shout99's Section 660 resource centre
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Susie Hughes
The Editor © Hardhatter 2007