I'm looking for some reassurance on how to treat fixed assets in this situation.
Company A is looking to split a revenue stream in to an entirely new company, company B. Both companies will be owned by Holdings. Holdings is purely a mechanism for paying dividends to shareholders and will pay employees salaries which will be recharged to the subsidiaries. Possibility of further recharges such as rent and rates etc.
Am I right in thinking that as Holdings will not be making money then to avoid creating accounting and tax losses from depreciation and capital allowances it would be best for the subsidiaries to own the fixed assets individually with an election to transfer at their TWDV? And if this is the case, is it acceptable for rent to be charged to Holdings to recharge to the subsidiaries even though the lease will not be shown on their balance sheet?
Thanks in advance.