Corporation Tax thresholds

4 Companies, 1 director and CT thresholds

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I am contracting for a company who then split out all its 4 different trades into 3 other companies.  This is the same director(s) for all.    There are substantial loans between these companies .

One of the companies has also bought a residential property and this is rented out independently,  over  £150k of loan from one company to other other for that alone.   This is completely different to what they do as a trade.   This co is not VAT registered but the others all are.

Would you agree that there appears there would be an apportionment of the CT banding,  due to associated companies/directors.?   (They seem very dependent on transferring money between them also.)     It can go from Company A to Company B to Company C and back again or not.   All stated as short term loans on the b/s.   

They didn't take any advice on this either that I can refer to and they seem oblivious. 

Genuine commercial reasons for the split ie, so that he could get funding separately. 

 

 

 

Replies (3)

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By David Ex
17th Jun 2024 13:48

It’s not clear whether you’re engaged to advise on tax. If not and you’ve noted the issue then I don’t think you need have any further involvement in the matter.

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By Paul Crowley
17th Jun 2024 15:14

It all depends on shareholding groups, not directors.

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