Income Shifting Legislation / Section 660
'Income Shifting' occurs when income from a small business is apportioned to family members, reducing the overall joint tax liability.
The Government planned to clamp down on 'income shifting' following HMRC's defeat in the Arctic Systems 'Section 660' case the House of Lords in 2007.
However, new legislation, originally due to commence in April 2008 was postponed in successive Budgets and Pre-Budget Reports, so as of April 2010 there are no current plans to enact legislation.
Income Shifting - Latest
Income shifting could be on Treasury radar once again
The tax director of the OTS says that income shifting may come into the spotlight again, as the tax simplification body reviews all aspects of small business taxation.
(Dec 21, 2010)
Income shifting legislation delayed in Budget 2008
Although Alistair Darling didn't even mention income shifting in his Budget speech today, hidden away in a Treasury press release comes the news that the proposed income shifting legislation will be postponed until 2009.
(Mar 12, 2008)
Contractors urged to sign Income Shifting petition
Contractors are being urged to protest against the so-called income shifting legislation by signing a petition on the No.10 website.
(Jan 2, 2008)
Income Shifting - Government releases consultation document
The Government today published a consultation document on 'income shifting' which aims at clamping down on business income received by family members.
(Dec 6, 2007)
Taxpayers face 500k bill over Arctic Systems case
Taxpayers are facing a 500k bill after HMRC failed in its quest to pursue a family business through the courts over a disputed 7k tax bill - the Arctic Systems case.
(Oct 25, 2007)
Government to take action on "income splitting" following Arctic Systems defeat
Hidden away in the Pre-Budget Report 2007 are signs that the Government plans to take action on "income splitting" following HRMC's defeat in the Arctic Systems "husband and wife" tax case.
(Oct 10, 2007)
Arctic Systems win at House of Lords - victory for IT Contractors
The House of Lords have ruled in favour of Arctic Systems in a landmark small business taxation case which could have forced many IT contractors to pay huge tax liabilities.
(Jul 25, 2007)
Arctic Systems House of Lords decision date set
The verdict in the House of Lords Arctic Systems case is due to be delivered on Wednesday July 25th.
(Jul 23, 2007)
Arctic Systems - Section 660 hearing begins at Lords
A landmark Section 660 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.
(Jun 5, 2007)
Landmark Section 660 family case goes to the Lords
The Professional Contractors Group has announced that the Arctic Systems ("Section 660") case is scheduled to be heard by the House of Lords in June 2007.
(Nov 21, 2006)
Key Section 660 hearing to take place in 2007
The key Arctic Systems Section 660 tax hearing which will help clarify how the Inland Revenue taxes husband and wife businesses will not be heard until 2007, according to the Professional Contractors Group.
(Oct 25, 2006)
Section 660 - Overview of the tax legislation
Information on the Section 660 (S660) rules which were aimed at legislating dividend payments for 'husband and wife' businesses in the UK.
(Feb 17, 2006)
Section 660 - Arctic Systems Win Appeal
Geoff Jones of Arctic Systems has won his landmark Section 660 appeal case - in a victory for the UK's family-run small businesses.
(Dec 16, 2005)
