• Happy New Year from the Taxman

    Posted on January 5, 2014 at 5:36 pm under Family Law category.

    Firstly from Tony and me Happy New Year to all our clients, colleagues and friends. As the song goes “let’s make it a good one”.

    Just before we went away a circular came through to me from the Family Law Section about a proposed change from the tax office when companies distribute monies or assets to shareholders or their associates as part of a property settlement. When a distribution of money from a company(as part of a settlement) has been made, until now, it has been exempt from tax when it is paid pursuant to a Court Order.

    As Gomer Pyle often said(for those of you who can remember) “Surprise Surprise Surprise” the taxman is now going to treat distributions from a company made this way as being subject to income tax in the hands of the person receiving the monies or property. This will have a dramatic effect on settlements whenever a private company is involved.

    It highlights how this area of law encompasses many many issues that need to be considered when attending to a property settlement

    It is also a nice little kick along to the government when people split up.
    Speak to you soon