BADR and TAAR — Condition C & 2 years from distribution

Hello, I previously ran a consultancy business as sole employee/director of a limited company. (I ceased trading in 2019 in order to return to full-time PAYE employment) I formally commenced winding up the company via MVL in 2021, and this was completed in 2022. Two distributions were made: — one in 2021, for which I claimed BADR — one in June 2022, which fell beneath the threshold for Capital Gains Tax. I'm considering returning to consultancy and want to make sure I understand if TAAR would be deemed applicable in order to make any adjusting payments needed. My understanding is that TAAR wouldn't apply, because it's done on a distribution-by-distribution basis and that condition C looks at a two-year window. Is that correct? Thanks 

Hi Dave,
TAAR (Targeted anti-avoidance rule) guidance is given in the Company Taxation Manual
CTM36305 - Particular topics: company winding up TAAR: targeted anti-avoidance rule (TAAR)
and
CTM07905 - Corporation tax: targeted anti-avoidance rule: summary
and  
CTM36320 - Particular topics: company winding up TAAR: condition C: introduction
CTM36325 - Particular topics: company winding up TAAR: condition C: ‘similar to’
and
CTM36335 - Particular topics: company winding up TAAR: condition C: ‘connected with
provides details. as you are referring to company tax you should refer to the corporation tax forum for further queries.
Thank you.

Great, thanks for your help — I'll raise it in the other forum Best Dave