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Income shifting
Overview

Following the Governments defeat in The House of Lords on the Jones vs. Garnett case, more commonly known as The Arctic Systems case, they made it clear that they would seek to introduce new legislation to address the issue they defined as 'income shifting'.

The first point to make is that this proposed legislation does not replace the existing S660 legislation but adds another layer of tests that anyone operating through a limited company would have to apply.

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