HMRC’s guidance on the company winding up TAARs

HMRC’s guidance on the targeted anti-avoidance rules to prevent liquidation of companies and the phoenixing of the trade has finally been published. The reactions to the guidance have been almost universally negative highlighting the fact that such examples as are given are not particularly helpful and noting that some of the guidance is quite simply incorrect. The guidance is also disappointing in its brevity. For instance the commentary is relatively sparse on Condition C: the examples on the meaning of ‘same or similar activity’ do not cover any areas of real doubt; and there is little meaningful insight on the interpretation of the term ‘involved with’. On Condition D (the motive test) the guidance fails to make it clear whether the tax avoidance test is applied to the combination of the winding up and the phoenixing that triggers Condition D or simply the winding...