Jones v. Garnett “Arctic Systems” – The story so far. By Nichola Ross Martin

The House of Lords is about to consider the tricky question of whether dividends paid by a company, Arctic Systems Limited to a working shareholder Mrs Jones, consisted of income arising under a settlement as defined by s 660A(1) ICTA 1988 and so should be treated as the income of her director and IT contractor spouse, Mr Jones.

There are two issues, firstly whether the act of forming a company with your spouse, and then working for it and then chosing to pay low salaries and di

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