Transactions in securities and the Phoenix TAAR on a company sale or winding-up | Tax Guidance | Tolley

Transactions in securities and the Phoenix TAAR on a company sale or winding-up

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Transactions in securities and the Phoenix TAAR on a company sale or winding-up

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

The transactions in securities (TiS) legislation is anti-avoidance legislation aimed at situations where close company shareholders have engineered a disposal of shares to obtain a beneficial capital gains tax (CGT) rate, ie avoid income tax, on specified transactions.

The targeted anti-avoidance rule (TAAR) aims to combat cases of 鈥榩hoenixism鈥� and applies to certain distributions made in the process of winding up companies. Phoenixism refers to a the same business 鈥榬ising from the ashes鈥� of a company, in other words where a company is liquidated and subsequently its business is carried on under the same or broadly the same ownership via a new entity within two years of the winding-up. Such transactions are likely to also be covered by the TiS regime 鈥� the TAAR was introduced to provide absolute certainty of treatment for such transactions. In practice when there is a company winding up the TAAR may be in point rather than the TiS.

This guidance note discusses some of the TiS and TAAR issues that may be

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+鈩�
Powered by
  • 29 Nov 2024 12:01

Popular Articles

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Overseas property businesses for companies

Overseas property businesses for companiesOverviewReal estate income is generally taxed where the property is located; the UK tax treaties generally allow the jurisdiction where the land is located to tax income from the land.Therefore, a UK company with overseas property may be subject to tax in

14 Jul 2020 12:22 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

First year allowances

First year allowancesFirst year allowances (FYAs) are available on the following items:鈥irst-year relief on qualifying new main rate plant and machinery (at 100%, which is described by HMRC as 鈥榝ull expensing鈥�) and special rate assets (at 50%) from 1 April 2023 (companies only). These FYAs were

14 Jul 2020 11:41 | Produced by Tolley Read more Read more