The first hearing of a Section 660A case will be before the Special Commissioners of Income
tax on June 14th 2004.
The case concerns Sussex based IT company, Arctic System. Geoff Jones and his wife Diana run
the firm and the impending case could have huge implications for thousands of husband and
wife businesses in the UK.
The Professional Contractors Group
(PCG) - which was formed in May 1999 to lobby against the
Government's IR35 proposals – is funding the case. The much-awaited case is the first real
test of the Inland Revenue's approach to Section 660.
About Section 660
Section 660 is also called the "married couples business tax." Last year figures showed that
there were over 3.5 million 'small business' in the UK. It is suggested that over half of UK
people related either by blood or marriage run businesses.
Editors note (Feb 2012):
The original settlements legislation dates back to the 1930s and was subsequently updated first in 1988, when it became the more familiar Section 660. It was changed again in 2005 when it was updated and rewritten into its current form as Section 624 of the Income Tax (Trading and Other Income) Act (ITTOIA) 2005. See more information on the current settlements legislation.