CGT or Dividend

[jamesbrown]

something I've been considering as part of PlanB/C..

If I sell my LTD. to a parent company (valued at the retained profit), and become a director/shareholder of the parent company, I believe that I don't have any TAAR restrictions as the company wasn't liquidated. Is that true?

No, I don't think that is true. It applies to sales too. The TAAR is explicit about continuing to be "involved with" the same or a similar trade or activity (condition C). It even applies to connected persons, so the TAAR is very broadly drawn in that regard. Obviously, seek advice, but I think this is pretty clearcut and there are no plausible ways around the TAAR, given how broadly it is drawn.

[Lance]

No, I don't think that is true. It applies to sales too. The TAAR is explicit about continuing to be "involved with" the same or a similar trade or activity (condition C). It even applies to connected persons, so the TAAR is very broadly drawn in that regard. Obviously, seek advice, but I think this is pretty clearcut and there are no plausible ways around the TAAR, given how broadly it is drawn.

hence I asked the question. I interpreted it differently.

But I can only find references to TAAR applying if a company that has been wound up. Not one that still exists but has been sold. The only HMRC info I can find is for ctm36340 and that is also all about winding up.


On the plus side there's a very strong argument that providing managed services to customers, is a different business to being an IT contractor, but as we know it is pretty subjective, and HMRC often interpret what they want it to be.

[jamesbrown]

hence I asked the question. I interpreted it differently.

But I can only find references to TAAR applying if a company that has been wound up. Not one that still exists but has been sold. The only HMRC info I can find is for ctm36340 and that is also all about winding up.


On the plus side there's a very strong argument that providing managed services to customers, is a different business to being an IT contractor, but as we know it is pretty subjective, and HMRC often interpret what they want it to be.

It definitely includes sales (it's about the disposal of shares). There's a good article on the TiS legislation and the TAAR in Tolley, assuming you have access:

https://www.lexisnexis.co.uk/tolley/...-or-winding-up

I doubt you have a very strong argument, tbh but, by all means, seek advice. Being involved with the same or a similar trade or activity is pretty all-encompassing. Sure, if you are moving from IT consultancy to fruit and veg sales, no problem. If you are going from IT consultancy to selling computers, you should probably still sweat it (not joking).

[jamesbrown]

But, anyway, to reiterate, this is all completely irrelevant to the OP.

[OrangeHopper]

The online Tax Return form simply says I don't need to complete the CGT section because my gain was less than £12,300.

And, as it turns out, I didn't get any dividends either during that year so no need to complete the Dividend section either.

Also, not having to pay back the child allowance any more on two sprogs means I am due a repayment.

Looks like a new fly rod is in the offing.

[jamesbrown]

The online Tax Return form simply says I don't need to complete the CGT section because my gain was less than £12,300.

And, as it turns out, I didn't get any dividends either during that year so no need to complete the Dividend section either.

Also, not having to pay back the child allowance any more on two sprogs means I am due a repayment.

Looks like a new fly rod is in the offing.