Relief In Small Company Tax case
Jones v Garnett (HM Inspector of Taxes) [2007] UKHL 35
HL(E)
Weekly Law Reports Summary
25 July 2007
A husband who provided his services to the market via a private company which his wife co-owned, thus distributing his earned income between them both via dividend, was not liable to tax on the income transferred to the wife, pursuant to section 660A of the Income and Corporation Taxes Act 1988, provided the wife’s shares in the company were ordinary shares which carried a right to more than just income.
But watch out if it is not a married couple - the marriage was the key to this success.