The latest in a long line of attacks on small businesses HMRC have undertaken a number of investigations on small businesses where both partners are shareholders and one, according to HMRC, contributes more then the other. HMRC have claimed that this is the transfer of value and that any dividends paid should be assessed on the primary contributor.
Although the Court of Appeal has recently ruled that in the case HMRC took on this issue there was no settlement and thus S660 does not apply there is still the possibility that HMRC will be able to challenge this before the House of Lords. It is still widely expected that HMRC will challenge businesses on this issue.
If you would like to know more how Gilbert Tax can help please call 0800 734 3333 or contact us.
