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.
- SATR - ommission of capital gains 84 1
- Recourse to Accountant for incorrect accounts 2,268 19
- Scanners 174 4
- Overdrawn Directors Loan Account 92 1
- ethical- to continue to act or not? 164 5
- Solar panels - VAT and Capital allowances 234 3
- Recharge for private use of a company car 405 9
- Payment plans for clients 126 2
- General rule: Evidence that the customer is in business 232 1
- Do most of you still use MS Office? 249 7
- Are any of you agents for doctors? 392 2
- Should I move back home away from my office? 449 9
- P60 or payslips? 98 1
- Property income in different capacities 111 1
- IHT dilemma 1,385 21
- Warning for freeagent accountants using payroll import 195 1
- IT advisory questions? 181 5
- Entrepreneurs Relief 798 44
- Has anyone else come across VAT account suspensions? 154 1
- Ceasing in membership of ATT 531 7
- Auto enrolment excuses 1,161
- Feedback on accounts production software for IFRS 799
- Add T&Cs to Sales Order in Sage 490
- Digita Hosted Software 321
- Credit where credit's due....... 275
- Director phone costs 239
- Buying goods in US and selling them to company in US 228
- What to say to Tom, Dick and Harry... 205
- Flat rate VAT- other income calculation 160
- Double taxation relief - same income, different individual 141