On 9 December 2015, HMRC published a consultation document on company distributions. Draft legislation published alongside the document and to be included in Finance Act 2016 toughens up the Transactions in Securities rules applicable to individuals and introduces a new Targeted Anti-Avoidance Rule (“TAAR”) for liquidation distributions.
The draft provisions had a 6 April 2016 commencement date to coincide with the introduction of the new dividend taxation regime for individuals, which sees the highest rate of tax on dividends rise to 38.1% compared with a highest rate of tax on capital gains of 28%.
Read the full article in the M&A Matters Spring edition PDF to hear more on the consultation including transactions in securities and new TAAR.
For more information, please contact:
Director, KPMG in the UK