Are companies associated if substantial commercial interdependence is only one way?

Are companies associated if substantial...

Didn't find your answer?

I have a situation where a father owns company 1 and his sons jointly own Company 2. Company 2 has been treated as CIHC as it lets out property to a connected company. Company 2 is dependent on Company 1 however, Company 1 is not commercially interdependent on Company 2. From the research I have done it appears to have been argued successfully before HMRC that ESC C9 should apply where dependence is only one way.

Has anyone had a similar situation to this and provide any substance to the above? I understand that an Inspector has agreed in at least one similar case that companies in such circumstances were not "associated" with each other.

Thanks.
Gillian

Replies (1)

Please login or register to join the discussion.

avatar
By AnonymousUser
04th Mar 2009 11:54

INTER dependence
It has to be two way. A search on the HMRC website should give you some examples.

Thanks (0)