HMRC have been given leave to appeal to the
House of Lords so the saga continues.
For those of you who have been following
this case with interest will remember that
the case hinged on whether dividends paid
by the company to the wife (who was not a
higher rate taxpayer) could be taxed instead
on her husband (who was a higher rate taxpayer).
In the High Court the Judge decided that ‘well
established principles’ (namely legislation
relating to settlements and arrangements)
could apply to the case. The Court of Appeal
overturned the High Court’s decision.
HMRC have now been granted leave to appeal
to the House of Lords. This now puts those
individuals whose affairs are similar to
that of Mr and Mrs Jones in a difficult position
as to reporting income on their tax returns.
Internet link:
HMRC advice Jones and Garnett
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