HMRC watch: Revised guidance on the settlements legislation

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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...

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30th Nov 2007 19:25

Echoed but
it is still worth being familiar with. There is more there than just the points in Jones v Garnett (dividend waivers and gifts to children for example) and I expect that HMRC will be looking for cases which are marginal to try and limit the effect of that decision. Partnerships maybe?

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03rd Dec 2007 18:01

Double Non-Taxation
Examples 22 and 23 are the same. Have they left a taxable example out? Perhaps it went in the post on a CD.

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04th Dec 2007 13:19

Sharing of risk / "income split"
Any update on the threatened topic of "income splitting" ?

Encouraged in the USA and Isle of Man ....

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04th Dec 2007 16:24

any day now
I had expected the draft legislation and guidamnce to be out by now, though there is apparently a delay...but I'm sure they won't br long !

It is unlikely to leave much work for the settlements legislation to do, I suspect.

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