Dividends ruling to hit family businesses - papers 30th Sept

According to the Special Commissioners’ judgment Inland Revenue versus Geoff and Diana Jones ruling, husbands and wives who both draw dividends from family firms will be treated as though all the income was the husband's rather than allowing couples to make use of her personal allowance and lower income tax rates where applicable. According to accountants Grant Thornton, this contradicts the Revenue’s move towards individual taxation, sexual equality and divorce court rulings which allow equal division of assets even where the wife has not played an active part in developing the business...