Arctic Systems - Revenue to Appeal to the Lords

Last month we reported on the Court of Appeal decision in the Arctic Systems case. Just in case you need a reminder, the case concerned a company owned by a husband and wife and 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). The case was won by the taxpayer in the Court of Appeal and we had hoped it had reached its final conclusion. Unfortunately the Revenue have requested leave to appeal to the House of Lords, so those taxpayers whose affairs bear a striking similarity to that of Mr and Mrs Jones, the shareholders of Arctic Systems, are again facing uncertainty as to how they should complete their tax returns.

The professional bodies and the Revenue have published further guidance on the current situation.

Internet links:

To read the Revenue’s guidance:
Settlements advice.

To read the professional bodies guidance:
Professional guidance.