DiscoverUK Tax PodcastTax Risks of Liquidation Distributions – Navigating the TAAR
Tax Risks of Liquidation Distributions – Navigating the TAAR

Tax Risks of Liquidation Distributions – Navigating the TAAR

Update: 2025-03-05
Share

Description

Send us a text

In this episode of The UK Tax Podcast, John Kavanagh, Chartered Tax Adviser, examines the risks of distributions in a liquidation being taxed as income rather than capital under the Targeted Anti-Avoidance Rule (TAAR). With no binding case law and limited guidance from HMRC, this is a highly uncertain area, particularly where individuals resume similar business activities after a winding up. John explains how the TAAR operates, the importance of Conditions C and D, and why securing Business Asset Disposal Relief (BADR) can be far from straightforward. Essential listening for advisers and business owners considering company liquidation.

Comments 
00:00
00:00
x

0.5x

0.8x

1.0x

1.25x

1.5x

2.0x

3.0x

Sleep Timer

Off

End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

Tax Risks of Liquidation Distributions – Navigating the TAAR

Tax Risks of Liquidation Distributions – Navigating the TAAR

John Kavanagh CTA ATT FRSA