LIMITED COMPANY GROUP CORPORATION TAX/COMPANY HOUSE PLANNING
Main purpose is if companies have different shareholders so that profits/losses/salaries/dividends are shared among different shareholders.
Group structures are fine and I set up many of these. However, these are costly to run and add extra layers of cost by having a new company with more accounts/annual return forms for both HMRC Corp. Tax /Companies House
My job is to give you tax planning but also to give you advice and to keep down your costs.
Group structure is the best option if the new company is set up with different person/ persons as shareholders/directors/company secretary and these people are paid salary/dividends separate from the first company.
By setting-up a group structure would mean sharing profits/losses in proportion to ownership of shares of the company.
Of use if:
One company is profitable and the second makes losses in which case these can be transferred from company to company (if making profits.) However not nearly as efficient as incorporating second company trade into the first company.
Another option is one company owning all assets so that second company only carries out the trade.