Associated companies

Associated companies

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If a person owns 100% of A Ltd and 75% of B Ltd, does anyone know if C Ltd is associated with A Ltd in the following circumstances:

B Ltd owns 55% of C Ltd. Therefore the person's actual shareholding in C Ltd is only 75%x55% = 41.25%. However, the person controls B Ltd which in turn controls C Ltd so would this make C Ltd and A Ltd associated companies?

Thanks
Charles Owen

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Euan's picture
By Euan MacLennan
03rd Oct 2006 18:31

Associated for Corporation Tax
A controls B and B controls C by reason of the majority shareholdings; they are therefore associated companies under s.416 ICTA 1988, which is invoked by s.13, Small companies' relief.

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