This Virtual Tax Partner © 'VtaxP' © tool checks to see if the Targeted Anti-Avoidance Rule (TAAR) is likely to apply.

From 6 April 2016 a Targeted Anti-Avoidance Rule (TAAR) specifically targets the practice of 'phoenixing' a company to avoid tax. 

This rule affects the tax treatment of any cash being withdrawn on liquidation. If you close one company only to start again in a similar business, you are likely to be caught by the TAAR.

When the rule applies your cash distribution will be taxed under the income tax rules. 

Check the TAAR

Will the money you receive on winding up your company be taxed under the Capital Gains Tax rules or will the Targeted Anti-Avoidance Rule (TAAR) apply and you will be taxed as if you receive a distribution?

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