In February 2019, HMRC issued Spotlight 47, aimed at dealing with perceived circumventions of the Targeted Anti-Avoidance Rule (TAAR) introduced in 2016 to tackle tax avoidance using phoenixism, UHY Hacker Young Group, a network of UK chartered accountants has highlighted.

The Institute of Chartered Accountants in England and Wales (ICAEW) and Chartered Institute of Taxation (CIOT) recently met HMRC to get a better understanding of the Spotlight.

HMRC had previously observed that companies were being liquidated, with the owners being taxed under Capital Gains Tax (CGT) on any gains arising, often paying tax at only 10 p...