RSS feedsThe taxman has issued 'confusing' guidance on husband and wife tax rules following the Arctic Systems case, according to advisers.
HM Revenue & Customs today issued updated settlements tax legislation in light of losing its battle against Geoff and Diana Jones of Arctic Systems.
But advisers were expecting HMRC to reveal a consultation document in which the taxman would effectively reverse the decision reached on Arctic, as had been promised by the Treasury.
Instead, HMRC's guidance is interim, taking into account the Lords' ruling but not outlining how it will reverse that decision - which is still expected.
Anne Redston, visiting professor at Kings College London, said while it was important for HMRC to update its guidance after losing the case, people would be confused about the contents of the latest document.
'This guidance is confusing, when we were expecting a consultation doc, it would have at least been helpful of HMRC to say "this isn't what you're expecting",' said Redston.
The Arctic Systems tax battle revolved around how the husband and wife business split their incomes and dividends to place themselves in an advantageous tax position.
In October's pre-Budget report the government said it would 'shortly' issue guidance on reversing the effect of the House of Lords' Arctic Systems judgment.
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