Yes, its best used for through holes or if blind machine a small undercut at the end of the thread and just stop the machine when the tool runs out, back it out of the cut and then withdraw the carrage.
If you can't get an undercut in and the part is not tool large then the spindle can be turned by hand stopping as the tap touches the bottom of the hole.
On the one in my photo because I had a valve seating face right at the end of the thread that I did not want to damage I managed to get a very fine undercut and then rotated the spindle by hand and left the feed engaged for the whole job, just disengaging the tap from the thread with half a turn of the cross slide before with drawing under power with the machine in reverse.
J