Tax avoidance: distributions, dividends and anti-phoenixing rules

In HMRC's ever growing arsenal of anti-avoidance measures, the targeted anti avoidance rule (TAAR) can only apply if the taxpayer is liquidating and not selling their business, explains Pete Miller, director of The Miller Partnership, but advisers and businesses need to make sure they understand the potential tax liability of capital distributions

When the details of the UK Finance Act 2016 were first published, new measures such as changes to the targeted anti avoidance rule (TAAR) were met with a fair degree of interest by company owners.

However, as the months have gone by and these changes have started to bed in, what was initially just a talking point has become a cause for concern for many of the businesses I talk to.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Business | What happens when clients rely on bad tax advice from finfluencers?

Tax | Treasury consults on £2m council tax surcharge

Tax | HMRC to clamp down on director’s loan accounts

Business | Warning on tax adviser regulation by the backdoor

Tax | Personal tax changes from 6 April 2026

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily