Income shift clampdown is delayed - Business - Evening Standard
       

Income shift clampdown is delayed

Husbands or wives who pass some of their earnings to their spouse because they pay a lower rate of tax will not be penalised by the Chancellor.

Alistair Darling had threatened to crack down on so-called "income shifting", which experts said could have raised £485 million over four years. But the Chancellor postponed plans to outlaw the loophole because of "the current economic challenges".

The Treasury warned the practice is "unfair" and remains "under review". The Treasury was keen to act after it lost a court case last year when the Law Lords ruled in favour of IT company Arctic Systems, run by husband and wife Geoff and Diana Jones.

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