CTM36330 - Particular topics: company winding up TAAR: condition C: 바카라 사이트榠nvolved with바카라 사이트�

ITTOIA05/S396B/404A (4)(d)

Condition C is met where 바카라 사이트渢he individual [who receives the distribution in a winding up] is involved with the carrying on of such a trade or activity by a person connected with the individual바카라 사이트�.

바카라 사이트淚nvolved with바카라 사이트�

Like 바카라 사이트渟imilar trade or activity바카라 사이트�, 바카라 사이트渋nvolved with바카라 사이트� is not a defined term and is potentially wide in scope. It is designed to prevent the TAAR being avoided by connected parties working together to circumvent the other conditions.

Example 1

Mrs C is an accountant who runs her business through a company. Her husband is a self-employed lion tamer. Mrs C winds up her company and starts work for a newly-formed company owned by her husband, providing accountancy services.

Mrs C continues to be involved with the carrying on of the same trade or activity as the wound-up company was involved with (the provision of accountancy services), even though she is now an employee rather than business owner. She is connected to her husband and so Condition C is met (and so are Conditions A and B). Condition D will still need to be satisfied.

Example 2

Instead of going to work for a newly-formed company, Mrs C, from Example 1, goes to work for her sister바카라 사이트檚 pre-existing accountancy practice, which the sister operates as a sole trader.

Mrs C is connected with her sister, and she is continuing to be 바카라 사이트渋nvolved with the carrying on of바카라 사이트� the same or a similar activity, and so Condition C is met. Condition D will still need to be satisfied.

Example 3

Mr B is a fitness instructor who provides his services through a company. After suffering an injury he winds up his company and starts work as a journalist. Mr B바카라 사이트檚 wife is also a fitness instructor and she offers her services as a sole trader, before and after the winding up of her husband바카라 사이트檚 company. Mr B provides no services to his wife바카라 사이트檚 business at all.

Mr B is not 바카라 사이트渋nvolved with the carrying on of바카라 사이트� a similar trade or activity after the winding up of the first company, even though his wife is.