Hi all,
Long-time lurker although I’ve recently come up against an issue with TAAR I was hoping to get some advice on. I switched to a permanent role Jan 2021 (nothing to do with IR35) and consequently my ltd was struck off in Jun 2021. At dissolution £25k was distributed as capital on which I claimed BADR and paid 10% tax.
The permanent role didn’t turn out as expected and I resigned in October and created a new ltd to start an outside IR35 contract. My accountant has advised that I may have a liability due to the TAAR (ITTOIA05/S396B) from the £25k distribution.
I’ve read several previous posts on here and websites stating the TAAR only applies to a winding up (formal liquidation) and not dissolution by strike off. I can’t however find any reference to specific legislation where this is stated to help convince the accountant. Is this actually stated anywhere in the legislation or is it implied from the wording of the TAAR? i.e. The TAAR very specifically refer to ‘winding up’ and not strike off or dissolution.
I understand the £25k capital distribution limit comes from CTA 2010 s1030A, i.e. dissolution via strike off would not be allowed if capital exceeds £25k and therefore the company would need to be formally wound up and TAAR would apply, is this correct?
Apologies if this has been answered previously!
Long-time lurker although I’ve recently come up against an issue with TAAR I was hoping to get some advice on. I switched to a permanent role Jan 2021 (nothing to do with IR35) and consequently my ltd was struck off in Jun 2021. At dissolution £25k was distributed as capital on which I claimed BADR and paid 10% tax.
The permanent role didn’t turn out as expected and I resigned in October and created a new ltd to start an outside IR35 contract. My accountant has advised that I may have a liability due to the TAAR (ITTOIA05/S396B) from the £25k distribution.
I’ve read several previous posts on here and websites stating the TAAR only applies to a winding up (formal liquidation) and not dissolution by strike off. I can’t however find any reference to specific legislation where this is stated to help convince the accountant. Is this actually stated anywhere in the legislation or is it implied from the wording of the TAAR? i.e. The TAAR very specifically refer to ‘winding up’ and not strike off or dissolution.
I understand the £25k capital distribution limit comes from CTA 2010 s1030A, i.e. dissolution via strike off would not be allowed if capital exceeds £25k and therefore the company would need to be formally wound up and TAAR would apply, is this correct?
Apologies if this has been answered previously!
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