Appeal Date Named In Section 660 Tax Case

by Robert Lee, Tax-News.com, London

11 January 2005

The owners of a small IT firm at the centre of a tax case that could have ramifications for thousands of similar family-run businesses in the UK are set to have their appeal heard in March.

The case concerns Geoff and Diana Jones who lost their landmark Section 660A case at the Special Commissioners when the Commissioners could not agree, and one used her casting vote in favour of the Inland Revenue.

Mr and Mrs Jones were contesting a £42,000 bill for back tax resulting from the Inland Revenue’s interpretation of existing legislation, which stops husband and wife-run firms from reducing their tax bill by allocating income to the less active partner, who pays tax at a lower rate.

The appeal is due to commence on March 15 and is being supported by the Professional Contractors Group, a lobbying organisation set up to help freelancers contest tax decisions, which has raised funds from its own membership and the wider business community.

The Revenue is believed to have delayed making a decision in around 100 similar cases pending the appeal court’s ruling.

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