Associated Companies

Associated Companies

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Which if any of the companies are associated for the purpose of the small companies rate of corporation tax:

John is the sole owner of company X

Company X owns 50% of company A and 50% of company B

Company A owns the other 50% of company B

The other 50% of company A is owned 25% each by John's cousins

All the shares rank equally as to votes, dividends and assets on a winding up etc

John is the sole director of each company

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Teignmouth
By Paul Scholes
07th Mar 2011 19:29

X&B

On those basic facts and with no other aspects of control, eg financial influence, I'd say that because John controls 100% of X and effectively 75% of B they are associated.

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Euan's picture
By Euan MacLennan
08th Mar 2011 10:22

I agree

X & B are associated for the reason given by Paul.

X & A are not associated because the cousins are too remote as relatives for their shareholdings to be aggregated with John's.

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