ARTICLE · 05 JUNE 2007

Tax Update, 4 June 2007

Smith & Williamson

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This update is issued weekly to interested clients and contacts. The House of Lords will hear the appeal from 5 to 7 June. This is the case where HMRC argued that dividends paid to Mrs Jones were assessable on Mr Jones under the settlement legislation

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1. Jones v Garnett (Artic Systems Ltd)

The House of Lords will hear the appeal from 5 to 7 June. This is the case where HMRC argued that dividends paid to Mrs Jones were assessable on Mr Jones under the settlement legislation.

2. Buy-to-let

HMRC has commented on the recent Times article: "Thousands of buy-to-let families face tax shock":

"Many of you will have seen the article in The Times on 29th May - "Thousands of buy-to-let families face tax shock" and you may be receiving queries from your clients about this.

By way of background, HMRC is not planning a tax crackdown in the way implied by the Times article. HMRC is planning to take a concerted approach to helping landlords of all descriptions (not just in the buy to let market) to understand and comply with their tax obligations in what they recognise to be a complex area. In taking this approach the explicit presumption will be that the majority of landlords want to make a correct return but that many may need some help to

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