Jones v Garnett (Arctic Systems): another way of getting to the same result

• Main Author: Kerridge, JR
• Format: Article in Journal/Newspaper
• Language: English
• Published: 2007
• Subjects: Arctic
• Online Access: http://hdl.handle.net/1983/f8fa4a10-fcb1-46ea-99b3-c7b26a041630; https://research-information.bris.ac.uk/en/publications/f8fa4a10-fcb1-46ea-99b3-c7b26a041630

Comments on the House of Lords judgment in Jones v Garnett (Inspector of Taxes), the Arctic Systems case, on whether dividends paid to the wife of the fee-earner in a small family company were subject to the settlements rules. Considers whether to establish a company with equal shareholdings amounted to a settlement, an element of bounty was present, but the wife's share was an outright gift and not substantially a right to income. Considers whether income-splitting between spouses under separate taxation is abusive. Examines the case for a comprehensive review of married couples' taxation. Comments on the House of Lords judgment in Jones v Garnett (Inspector of Taxes), the Arctic Systems case, on whether dividends paid to the wife of the fee-earner in a small family company were subject to the settlements rules. Considers whether to establish a company with equal shareholdings amounted to a settlement, an element of bounty was present, but the wife's share was an outright gift and not substantially a right to income. Considers whether income-splitting between spouses under separate taxation is abusive. Examines the case for a comprehensive review of married couples' taxation.