Seafield, the warehousing and distribution company, has settled an income tax dispute with the British Inland Revenue. The agreed payment amounts to £200,000 sterling. The long-disputed claim was in respect of income tax on a payment of £1.28 million made in 1989 to a company providing the services of a former director. The liabilities could have exceeded £1.6 million.

Seafield said, while it is now operating profitably, the existence of the claim had prevented it from progressing on a number of fronts, including seeking a capital reconstruction which must take place before dividend payments can be resumed. The group, with the full support of its advisers, had contested the claim in the past but "has now reluctantly agreed" to the payment of £200,000, over a three-year period "in full and final settlement of this matter".

Seafield now intends to seek the approval of shareholders and the Irish High Court for a capital reconstruction "as rapidly as possible". Chairman, Mr Peter Duffy said the company could now "move towards the goals of resuming dividend payments and expanding its activities".