HMRC has added the new Spotlight 47 to the list of tax avoidance schemes it has begun investigating, concerning schemes which attempt to circumvent the targeted anti-avoidance rule (TAAR) under which distributions on a company winding-up are subject to income tax, rather than CGT.
Some promoters claim that the TAAR will not apply where certain modifications are made to the arrangements, such as selling the company to a third party rather than winding it up.
Seen as a way of facilitating phoenixism, HMRC says it will investigate any attempts to avoid the income tax charge, and will consider whether the GAAR applies in cases where promoters argue that the TAAR does not cover these schemes.
HMRC has added the new Spotlight 47 to the list of tax avoidance schemes it has begun investigating, concerning schemes which attempt to circumvent the targeted anti-avoidance rule (TAAR) under which distributions on a company winding-up are subject to income tax, rather than CGT.
Some promoters claim that the TAAR will not apply where certain modifications are made to the arrangements, such as selling the company to a third party rather than winding it up.
Seen as a way of facilitating phoenixism, HMRC says it will investigate any attempts to avoid the income tax charge, and will consider whether the GAAR applies in cases where promoters argue that the TAAR does not cover these schemes.
