Commercial interdependence and associated companies
I have the following situation...
Company M derives all of its income, in the form of management fees, from company H.
Company M, which is a management company, has 3 suppliers, companies S,T and U.
Companies S, T and U derive roughly 50% of their income from M and 50% directly from H.
The shareholders and directors of company M are the sole shareholders of companies S, T and U, the majority (possibly sole) shareholder of H and A N Other who is the internal accountant of H, so 5 shareholders in M owing 20% each (no one person in control).
My question, as the external accountant of M, S, T and U, is which companies, if any, are associated for corporation tax purposes due to financial interdependence or anything else.
If it is relevant, company H is a full rate corporation tax payer irrespective of the existence of the other companies.
Please note I am only after answers regarding the CT and associated company rules. Please no comments about IR35 or disguised remuneration, thanks!
- Xerocon 2016 1,020 24
- Entrepreneurs' Relief upon sale of a cash rich company 2,192 41
- buying asset and settling vendor's debt 236 6
- Posting invoices with balance brought forward 250 7
- HMRC now overriding SA bank repayment details on tax returns 598 12
- Personal Tax 499 11
- USA Tax Query 175 1
- Disengagement Help! 1,661 25
- Is HMRC Basic Tools basically wrong? 946 6
- Expenses paid by director (the comapny owner) 299 2
- Write an article on latest tax changes for landlords. 602 18
- Corrupt Excel File 675 10
- Website costs (intangible assets) tax relief 354 4
- Is Xero payroll as rubbish as I suspect it is? 1,976 43
- Locked Out of HMRC Online Account - HMRC Not Responding 290 2
- Re-Training costs - tax reief 415 7
- Capital Gain on Share Disposal with Held Over Gains 180 1
- 64-8's amazingly quick 344 4
- last minute request 523 5
- VAT - Check on clients business 1,254 46