Just wondering what constitutes connected/associated companies from the point of view of allowing a bad debt write off for CT?
If person A has a 100% share in Company X and only a 49% share in Company Y (the other shareholder Person B holds ALL the other 51%) and Company Y has gone into liquidation owing Company X money is the write off allowable for CT for Company X because the Person A did NOT have had a controlling interest in Company Y which has gone into liquidation?
Replies (3)
Please login or register to join the discussion.
Given that s.466-472 apply specifically to Part 5, I think 'that's it!', despite a veiled threat posed by s.466 in referring to s.1122 CTA/10.
However, there are situations in which control could still apply:
the 49% shareholder is the sole director whilst 51% fellow is just a shareholderboth are directors but the Board passes a resolution making the 49%director in absolute control of the affairs of the company, and the other director being silent
etc