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S660 very briefly! 
Section 660
The Section 660 rule, has been UK legislation since the 1990's. Its primary aim was to prevent people passing across assets and income to family members in an effort to reduce their tax liabilities, whilst intending to reclaim those assets at a later date. However, this rule was not, until recently, applied to company dividend payments.
Now known by many as the 'married couples business tax', the Revenue have recently begun to claim that the Section 660 rules can be applied to dividend income received. In other words, where a limited company director has his non-fee earning spouse as a joint-shareholder, any dividends she receives from the company should be taxed as her husband's income. Although this tax is being fought vigorously by several pressure groups, some people have received tax demands amounting to tens of thousands of pounds, backdated several years.
Again, if you feel you may be affected by Section 660, you should discuss your concerns with your accountant. A dedicated self employed/consultant/contractor accountant will be fully aware of the Section 660 legislation and should be able to provide sound advice. In the light of the recent 'Arctic Systems' House of Lords appeal and subsequent judgement against HMRC the government are now moving to introduce new legislation known as 'Income Shifting'. Following the Budget of March 12th this legislation now looks set to be introduced next year rather than as was expected from April this year.
And for those that are interested the draft consultation document can be down-loaded here in PDF format.
