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Income Shifting Legislation / Section 660 Information
The Government has announced its intention to clamp down on Income Shifting or "Income Splitting", which occurs when income from a small business is apportioned to family members, reducing the overall joint tax liability. The income shifting consultation period ends on 28th February 2008 with a proposed start date of April 2008. This section also contains details on "Section 660" and the Arctic Systems case, which HMRC lost.

Income Shifting

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Further reaction to Family Business Tax postponement
The Chancellor's decision to postpone the 'income shifting' proposals in March was widely celebrated - a leading accountant suggests such legislation would have had an incredibly detrimental affect on family-run businesses. [June 2, 2008]

Income Shifting - Legislation postponed until 2009
Plans to go ahead with the controversial income shifting legislation have been shelved until 2009. [March 13, 2008]

Income Shifting proposals condemned as "retarded"
A leading business group has submitted its formal response to the Government's controversial income shifting proposals. [February 27, 2008]

Income Shifting - Is a family business tax u-turn on the cards?
Following the Chancellor's recent partial U-turn on Capital Gains Tax, there is now mounting pressure on the Treasury to backtrack on its controversial plans to ramp up tax on family firms in the recently announced income shifting proposals. [February 18, 2008]

Family business taxation proposals slammed by business group
The Government's latest proposed clampdown on family-run businesses - this time on 'income splitting' results in more criticism by leading business organisations. [December 12, 2007]

Income Splitting could impose "horrific burden" on family businesses
The Government has published a consultation document outlining how it intends to clamp down on so-called 'income splitting'. Critics say the proposals will impose a horrific burden on thousands of family businesses. [December 7, 2007]

£500,000 bill for "Husband and Wife" tax case
Taxpayers are facing a £500k bill after the taxman failed in its quest to pursue a family business through the courts over a disputed £7,000 tax bill. [October 26, 2007]

Will there be a tax clampdown on family owned businesses?
Following the Arctic Systems victory at the Lords last week, the Government has announced its intention to create new legislation which may cost family-owned businesses thousands. [July 30, 2007]

Arctic Systems win at Lords - victory for small businesses
The House of Lords have ruled in favour of Arctic Systems in a landmark small business taxation case which could have forced small businesses to pay huge tax liabilities. [July 25, 2007]

Arctic Systems case - No tax certainty for family businesses
The final arguments of a landmark Arctic Systems tax case, heard earlier this month in the House of Lords, will have a major impact on the future taxation of family businesses whether the taxman wins or loses, according [June 21, 2007]

Arctic Systems "family tax" hearing begins at House of Lords
A landmark family tax hearing began today in the House of Lords. This will be the final stage in the landmark case which will have implications for hundreds of thousands of family businesses. [June 5, 2007]

Section 660 Arctic Case goes to the House of Lords - June 2007
The Professional Contractors Group has announced that the Arctic Systems ("Section 660") case is scheduled to be heard by the House of Lords on June 5-7th 2007 inclusive. [November 18, 2006]

Section 660 - PCG backs Arctic Systems against Revenue Lords Appeal
The PCG has confirmed it will continue to support Arctic Systems in their Section 660 "married couples business tax" court battle. HMRC has been granted leave to appeal to the House of Lords following Arctic Systems' Court of Appeal victory in late 2005 [March 27, 2006]

Section 660 - Background Information on the Tax Rules
Information on Section 660, rules which may affect the treatment of dividend payments for 'husband and wife' companies in the UK. [March 8, 2006]

Section 660: Guidance note on the settlements legislation
The UK's key tax bodies have issued a guidance note to help with self assessment, in light of the the recent Arctic Systems Section 660 appeal decision (otherwise known as the "married couples business tax") [January 19, 2006]

Section 660 - Revenue threatens Arctic Systems decision
The Inland Revenue have announced its decision to appeal against the Section 660 Arctic Systems ruling by attempting to appeal to the House of Lords. [January 16, 2006]

Section 660 - Arctic Systems Win Appeal
Geoff Jones of Arctic Systems has won his landmark Section 660 appeal case. Good news for "husband and wife" businesses in the UK [December 16, 2005]

Analysis of the Court of Appeal’s decision in Arctic Systems
Analysis of the Arctic Systems victory at the Court of Appeal and how the outcome could affect married couples in business together. [December 16, 2005]

Section 660 Calculator - How much will it cost you?
A useful article enabling small business owners to see how they may be affected by the Section 660 legislation, or 'married couples tax' or 'settlements legislation' [October 4, 2005]

Family Business and the Arctic Systems Ruling - Your Questions Answered
Key legal questions answered following the controversial Arctic Systems Section 660 ruling. The implications of the ruling on husband and wife owners of a family business. [June 17, 2005]

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