Arctic Systems verdict due 'later in 2007'
A landmark tax case that has implications for thousands of husband and wife partnerships will not be resolved before the January deadline for income self-assessment.
Announcing the news yesterday, the Professional Contractors Group said clarity on how HM Revenue & Customs interprets controversial tax rule S660 will not grace taxpayers until 2007.
The case, which is between Geoff Jones of Arctic Systems and HMRC, is now expected to be settled by The House of Lords "later in the year," the PCG said.
John Thomas, group chief executive, expressed disappointment for Arctic Systems and for other taxpayers, who may have used a similar structure to the IT firm to source their income.
"It is a shame that there will not be a judgment in time to bring certainty for taxpayers before the January 31st deadline.
"We had originally hoped that the case would be settled before the end of 2006," he said, "but sadly the timescales involved with taking a case to the House of Lords mean that this has not proved possible."