Post Arctic
With regard to open cases, HMRC will review all such cases and settle them in line with the decision if appropriate. Each case will be considered on the basis of its individual facts, but unless there are any additional factors which might cause HMRC to take a different view, they expect that most cases where the settled property comprises ordinary shares in a company, or an ordinary (i.e. unlimited) interest in a partnership will be within the exemption for outright gifts between spouses.
HMRC had previously said that self-assessment returns for the year 2005-06 should be completed in line with the Court of Appeal decision. These returns will not need to be amended.
Self-assessment returns for the year 2006-07 should be completed in line with the House of Lords decision and HMRC are preparing new detailed guidance on the settlements legislation in line with the decision. HMRC say that this will be issued in autumn in time for people to be able to prepare these returns.
www.hmrc.gov.uk
