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.
- are we that stupid 852 19
- Foster Care 35 1
- Spread Betting and Forex Trading 330 5
- letter of reference 130 1
- Flexible report structure in cloud accounting 55 1
- Self Assessment penalties again 272 3
- Flat Management Company 191 1
- Share structure questions - close company 168 2
- Roll old capital gain into current one or declare separately? 160 4
- Income prior to company formation 336 9
- How do you pay Inheritance Tax when HMRC haven't demanded it 723 12
- Inexpensive CRM for small accountancy practice? 308 5
- Forbes Computer Systems - Practice Management (CRM) 123 1
- Can I sell my own equipment to my business? 526 5
- Practice software 1,420 20
- Continuity of practice-ACCA 362 1
- Company leaving VAT group 169 4
- Starting your response in the subject line of the form 611 18
- Staff training 1,551 13
- Goodwill on incorporation 281 2
- Motor Traders Assistant Bookkeeping Programme queries 327
- Tracesmart/Lexis Nexis AML software? Any opinions? 286
- French ConnectionUK 267
- Fundraising for friend - minimise tax? 246
- Can anyone explain Indian Minimum Alternate Tax 216
- Recommended International mobile phone coverage and costs? 214
- Tax surcharge appeal - where to send ? 151
- E-mailing customer invoices in VT Transaction+ 148
- Agricultural Flat Rate Scheme 148
- Indian Provident Fund 146