HMRC have now updated their guidance on the settlement legislation following the decision of the House of Lords in the case of Jones v Garnett Arctic Systems, which was made in favour of the taxpayer.
The changes to the guidance put Revenue practice in this area back to where the majority of tax agents thought it was prior to 2003. However, there is also some new guidance in respect of areas such as:
- Operation of the outright gift exemption for married couples and civil partnerships
- The transfer between spouses Iand civil partnerships) of managed service company shares - these shares may be regarded as having limited capital rights
- Updated examples of settlements in general terms for couples and minor children
- More complete and better briefings on the troublesome subject of...