Re: Limited Company Share Dividends

On 31 Jan 2006 01:28:47 -0800, "golden graham" <ianm454@xxxxxxxxx>
wrote:

>Thank you Paul - v useful. We are about to find out just how competent
>our accountant is Whats the Arctic Systems case all about?
>

It is about the "settlements" legislation - Section 660 of the Income
and Corporation Taxes Act.

>From the description of your business structure elsewhere in the
thread, it is unlikely to be applicable to you.

If HMRC get their way (they have lost the appeal, but are now
attempting an appeal to the House of Lords), then It applies where the
fee earner(s) for the business take a low salary in order to be able
to pay out large dividends to related non fee earners, thus avoiding
them paying higher rate tax on as much of their earnings as HMRC feel
they "should".
--
Alex Heney, Global Villager
If it glows don't touch it!
To reply by email, my address is alexATheneyDOTplusDOTcom
.