Family owned companies
I have 3 client companies:
- Company A is owned 30% by Mr X, 25% by Mrs X, 20% each by their adult son and daughter and 5% by a non-family employee. Mr & Mrs X are the directors.
- Company B is owned 100% by the son, who is the only director. However, the company is run by Mr X and the son is barely involved.
- Company C is owned 100% by the daughter, who is the only director. However, the company is run by Mr X and the daughter is barely involved.
Companies A and B trade from the same premises. Company B sells only to Companies A & C. The majority of Company C's sales are to Company A, but there are other external customers. Company A is a massive loan creditor of Company C. There is therefore substantial commercial and financial interdependence.
- Are all or any combination of two of the companies associated for the purpose of the CT small profit rate threshold?
- Are all or any combination of two of the companies related parties for disclosure in the small company accounts under the FRSSE?
My first impression is that all the companies are associated and related because when there is substantial commercial interdependence, you attribute the shares held by family members. My doubt is that while this would give Mr X 95% control of Company A, I am not sure if this extends to attributing to him the shares held by the family members in the other two companies, giving him 100% of Companies B & C.
- Can my company contibute more than 40000 to my pension in a tax year? 261 5
- . 192 2
- Freelance/Employee 649 17
- Recommendations for online payroll software 195 1
- Accountant Specialization. 258 2
- Rectify overpaid childcare vouchers, how? 165 2
- CT600 - Credit balance in expenses? 165 6
- Claiming VAT on car lease 450 27
- Capital Gains Tax on property with multiple uses 97 1
- Returning papers to ex-clients 595 7
- How to network with other Accountants? 683 5
- Correcting earlier year CT600s 129 2
- Agent Authorisation Issue 189 2
- CWF1 - is it still required?? 334 6
- Is it just me ... 293 5
- Duplicating Sales and COS but does not impacting bottom line? Legal? 296 4
- CIS registration when already registered for PAYE 119 4
- HMRC Agent Accounts - PAYE 354 10
- Taxable Benefit for Director? 225 1
- Directors exempt from AE? 1,541 18
- Chart of account segments; Balance sheet vs P&L 747
- Any knowledge of salesorder.com 405
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 354
- Electric Car 289
- S222 Charge 237
- Corporation tax penalties and fines on the CT600 185
- IP trans to holding company 183
- Software to Deal with Amazon and Ebay Sales 171
- AIA 166
- Best way to convert Sage data to VT Transaction+ 164