This has been published, which means if you wind up your limited company and restart in the same line of business within two years, then you cannot take advantage of drawing cash from the business as capital when winding it up.
Corporation Tax, Income Tax and Capital Gains Tax: company distributions
Basically:
Draft clause : https://www.gov.uk/government/upload...use_16_-_1.pdf
Corporation Tax, Income Tax and Capital Gains Tax: company distributions
Basically:
Legislation will be introduced in Finance Bill 2016 to amend ITTOIA and implement a new TAAR. The TAAR will treat a distribution from a winding-up as if it were an income distribution for the purpose of section 1000 CTA 2010 where certain conditions are met.
These conditions are:
* an individual (S) who is a shareholder in a close company (C) receives from C a distribution in respect of shares in a winding-up
* within a period of two years after the distribution, S continues to be involved in a similar trade or activity
* the circumstances surrounding the winding-up have the main purpose, or one of the main purposes, of obtaining a tax advantage
These conditions are:
* an individual (S) who is a shareholder in a close company (C) receives from C a distribution in respect of shares in a winding-up
* within a period of two years after the distribution, S continues to be involved in a similar trade or activity
* the circumstances surrounding the winding-up have the main purpose, or one of the main purposes, of obtaining a tax advantage
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