.png)
.png)
Misplaced spotlight
Key points
- Proceeds from a winding up of a company are chargeable to capital gains tax unless specific conditions apply when income tax will be due.
- Spotlight 47 targets schemes that try to avoid the phoenixism TAAR by selling to a third party.
- Taxpayers may prefer to sell a company with undistributed reserves to be sure of the tax treatment.
- How can the GAAR apply to a company that has been sold rather than placed in liquidation?
- The TAAR applied only to transactions involving a company winding up.
HMRC published Spotlight 47 Attempts to avoid an income tax charge when a company is wound up on 4 February 2019 (tinyurl.com/y826b6lb). Being a slightly late riser that day – it was after all the day after the Super Bowl – I did not see it until I received emails from three people drawing my attention to it.
Having read it I immediately felt that...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
