I find myself with a recently created "group" situation, where a client company has acquired the entire issued share capital of another and then set up a third, also wholly owned. This is clearly a group within the Companies Act definition but, embarrassingly after a working lifetime in the business, I find myself unsure as to what action if any must be taken, other than disclosure in the notes of the parent.
I suspect that matters may hinge upon whether any surrender of losses or similar is to be involved but, in what circs are consolidated accounts required by HMRC and/or Co House - and is there any essential formality of which I am blissfully unaware?
All/any assistance will be gratefully received.
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You describe the group as small. If that is correct the holding company will be exempt from the requirement to prepared group accounts, but perhaps check the actual size limits if you have not already done so.
HMRC incidentally have no say in whether a group is required to prepare consolidated accounts. It's none of their business.
Group accounts and audit
If the group qualifies as small in accordance with s.383 CA 2006, the parent company also qualifies as small and is not required to prepare group accounts (but may do so under s.398) and the individual company accounts of the parent and subsidiaries are exempt from audit under s.479.