Corporation Tax thresholds

4 Companies, 1 director and CT thresholds

Didn't find your answer?

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)

Please login or register to join the discussion.

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.

Thanks (1)
By Paul Crowley
17th Jun 2024 15:14

It all depends on shareholding groups, not directors.

Thanks (1)