Pete Miller (The Miller Partnership) is critical of HMRC’s long-awaited guidance.
Background
FA 2016 introduced legislation at ITTOIA 2005 ss396B and 404A which came into force on 6 April 2016 to override in some circumstances the normal rule that the proceeds of liquidating a company will be charged to capital gains tax as capital distributions. The override applies in essence where an individual receives the proceeds of the winding up of a close company but carries on the same or a similar trade or business either in another company or in another form. If the new rules apply the proceeds of the liquidation are treated as income distributions.
On 6 July 2017 HMRC finally published the long awaited guidance on these targeted anti-avoidance rules (TAARs). The guidance is in HMRC’s Company Taxation Manual at CTM36300 onwards. Unfortunately for HMRC the...
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Pete Miller (The Miller Partnership) is critical of HMRC’s long-awaited guidance.
Background
FA 2016 introduced legislation at ITTOIA 2005 ss396B and 404A which came into force on 6 April 2016 to override in some circumstances the normal rule that the proceeds of liquidating a company will be charged to capital gains tax as capital distributions. The override applies in essence where an individual receives the proceeds of the winding up of a close company but carries on the same or a similar trade or business either in another company or in another form. If the new rules apply the proceeds of the liquidation are treated as income distributions.
On 6 July 2017 HMRC finally published the long awaited guidance on these targeted anti-avoidance rules (TAARs). The guidance is in HMRC’s Company Taxation Manual at CTM36300 onwards. Unfortunately for HMRC the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
