Related Parties Yet Again

Related Parties Yet Again

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Company A owned and controlled by Mr 1 and Mrs 2 employs Mr 9. 

Mr 1, Mrs 2, Mr 9 and A.Other plan to start New Co. with 25% shareholdings each and similiar voting/control etc.  This will be run and operated from the same location as Company A.  The business area is different but not hugely so.

Now if Mr 9 is not connected to Mr 1 and Mrs 2, no problem, but as a full time employee of Company A would Mr 9's rights be attributed to Mr 1 and Mrs 2?

Logic suggests yes, but I cant see any examples suggesting it would in either HMRC's guidelines or the wording of the legislation.

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Euan's picture
By Euan MacLennan
12th Jul 2012 09:59

No

Assuming also that Mr 9 is not a member of Mr 1 & Mrs 2's household, Mr 9's rights are not attributed to Mr 1 & Mrs 2, so the companies are not related under the definitions in the FRSSE.

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