Arctic Systems
Discussion
David_s said:
Looks like HMRC have lost. Is this the end of it?
...and if it is, should I review my accounts back to 2003 and reallocate dividends to my wife (the company was set up with a 60/40 split in shareholding a few years ago, but my account has been paying all dividends to me in spite of this )finally, if my wife's share of the divident is less than £38k (or whatever the tax threshold is for dividend income) will she have to retrospectively file tax returns if I do this, and if so, will there be any penalties?
any thoughts greatly appreciated...
UV
Edited by Ultraviolet on Wednesday 25th July 14:39
Noger said:
Wait and see what the response from Hector is. They could always bring out more legislation.
Almost certainly. But, crucially, new legislation cannot be applied up to 6 years retrospectively which was what they were trying to do with Section 660a (on the grounds that it was just a new interpretation of existing legislation).And yes, new legislation is "being brought forward"
http://www.hmrc.gov.uk/practitioners/sba.htm
As you rightly say, at least it won't affect 6 years previously. I have no real problems with them introducing legislation, at least we can make a decision one way or the other, but having something hanging over your head that you could lose your house over, and that takes 5 law lords to even understand properly, that is another thing.
http://www.hmrc.gov.uk/practitioners/sba.htm
As you rightly say, at least it won't affect 6 years previously. I have no real problems with them introducing legislation, at least we can make a decision one way or the other, but having something hanging over your head that you could lose your house over, and that takes 5 law lords to even understand properly, that is another thing.
"That minimises their tax liability, and results in an unfair outcome, increasing the tax burden on other tax payers and putting businesses that compete with these individuals at a competitive disadvantage. "
How do they gain a 'competitive advantage' in business? This is a personal taxation issue surely? Are they suggesting it lowers labour costs in some way?
I think the court have said it is legal which means that every legal tax minimising method also "results in an unfair outcome, increasing the tax burden on other tax payers".
So lets chance the law on ISAs, private equity, premium bondsand national savings, allowable expenses etc. after all they are all legal ways on minimising the tax bill too?
How do they gain a 'competitive advantage' in business? This is a personal taxation issue surely? Are they suggesting it lowers labour costs in some way?
I think the court have said it is legal which means that every legal tax minimising method also "results in an unfair outcome, increasing the tax burden on other tax payers".
So lets chance the law on ISAs, private equity, premium bondsand national savings, allowable expenses etc. after all they are all legal ways on minimising the tax bill too?
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