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Posted Wed, 13 Apr 2022 08:27:28 GMT by mart_hetz
Hello, I closed my IT company in March 2021 with the intention of retiring from IT after 24 years, and to use the funds to start a property business. There were funds of around £440k returned to me after BADR. I set up a new property LTD company and bought one block of flats and continue to work in the property space. Its all good but I miss working with people and structure. I have now been headhunted by a large firm( unconnected to me) and offered employment in the same line of IT work, as a salaried employee on contract. I have told the agent that I am not really sure I want it and would only work 4 days per week. Are there any things I would need to follow/ensure if I was to take this employment without jeapordising the BADR from 2021/causing an issue around ctm3630? Many thanks, 
Posted Thu, 19 May 2022 13:31:04 GMT by HMRC Admin 2
Hi,

The information provided suggests that conditions A, B and C of the targeted anti-avoidance rule are satisfied.

CTM36305 - Particular topics: company winding up TAAR: targeted anti-avoidance rule (TAAR)

Where conditions A, B and C are satisfied S396B/404A will still not apply unless Condition D is also met.  Subject to the facts of the case, where Condition C is met due to an individual remaining ‘involved with the carrying on of’ a trade as an employee, rather than as an owner, shareholder or partner, and has no involvement in or influence over the direction or decision-making of the entity carrying on the activities, it is less likely that Condition D will be met. 

CTM36340 - Particular topics: company winding up TAAR: condition D

However, ITTOIA05/S396B/404A provides no statutory clearance procedure. Although there is a non-statutory clearance procedure, the applicant would not be uncertain about purpose, which is a subjective matter. It follows that a clearance application would not be appropriate unless it is limited to the application of specific rules in the legislation where there is genuine uncertainty about their application to a specific proposed transaction.

You can find information on our Non-Statutory Clearance Service and how to make an application here:

Find out about the Non-Statutory Clearance Service

Thank you.

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