The new personal tax regime – maximising entitlement to personal allowances

I’ve spent over 30 years in tax, and after about 20 years I thought I had sorted out in my mind how the basic personal tax system worked. The introduction of the Savings Allowance and the Dividend Allowance did knock my confidence a bit but I’m now back to a state of inner calm – I think.

Liquidations beware

The government has become concerned about companies being run for a short period of time, liquidated and then the trade restarted in another business vehicle. In order to address this, a new Targeted Anti-Avoidance Rule (TAAR) is introduced which will apply to certain company distributions in respect of share capital in a winding up. This TAAR will treat the distribution from a winding-up as if it were a distribution chargeable to income tax where certain conditions are met for distributions made on or after 6 April 2016.