Company A owns 49% of company B. Unconnected party holds 50% in company B with the son of company A directors holding other 1%. Company A has also made substantial loan to company B. With a 31 March 2011 year end, HMRC are insisting that the companies are associated. Is there any way out that anyone can think of or is it a case of admitting HMRC are correct?
Any answers appreciated.