New settlements guidance debuts

After the House of Lords decision in favour of the taxpayer in Jones v Garnett also known as Arctic Systems HMRC issued interim guidance on the application of the settlements legislation to cases similar to that case.

As promised and shortly before the publication of the consultation document on the subject they have published more detailed guidance  - and this is available in HMRC's Trusts Settlements and Estates Manual at TSEM 4000 onwards.

Helpsheet 270 which accompanies the trusts etc. pages of the individual self-assessment return has also been revised.

It is important to note that this is a repackaging of the old guidance. The new consultation document on the settlements legislation has been published and can be found on www.hm-treasury.gov.uk.

With regard to the guidance the Professional Contractors Group says that 'it seems to be in line with the Lords' judgment but...