Arctic couple win Tax Personality of the Year

The couple who challenged the Government on the controversial Section 660 - married couple's business tax - have been awarded the "Tax Personality of the Year".

Geoff and Diana Jones from Arctic Systems who have been at the forefront of the Section 660 test case were announced as winners of the prestigious award at the LexisNexis Butterworths Taxation Awards at the Park Lane Hilton, London.

The annual event is usually dominated by the leading tax advisers and accountancy firms. A previous winner was freelancer tax expert Anne Redston, who was an adviser on the Arctic Systems case.

Arctic Systems

Geoff and Diana Jones became somewhat unplanned celebrities when the Inland Revenue targeted them four years ago on a little-known, old 'settlements legislation' called Section 660. In short, the Revenue argued that the dividends paid to Mrs Jones were really part of Mr Jones's income and should be taxed at a higher rate level.

This led the Jones' - and thousands of other married couples in business together - facing a tax bill of up to £42,000.

Geoff and Diana Jones with PCG's Simon Juden (centre)

This random challenge also thrust Mr and Mrs Jones, who run IT consultancy, Arctic Systems, into the political, media and legal spotlight.

The case was raised in Parliament as a lengthy, and continuing, legal battle ensued. The legal roller coaster took Mr and Mrs Jones through a controversial defeat at the Commissioners, a subsequent defeat in the High Court and finally a victory in the Court of Appeal. Only to learn a few weeks later that the Revenue planned to appeal the decision to the House of Lords. That case is expected to be heard later this year. The case has been supported by a number of small business organisations and interested parties.

The judging panel at the awards praised the couple's tenacity in pursuing their landmark case over a three-year period of trials and tribulations.