Tax Dragon wrote:Never much fun for the women, is it? (I think, even in these modern times, the virgins are still assumed to be female.)
Not at all. Every time some nutter blows himself to kingdom come in the hope of acquiring his many virgins, I take a little solace that it is most likely a bunch of male, spotty, 35 year old Dungeons and Dragons fans that he's going to get.
I do wonder if Allah would approve of this arrangement. Seems to be a blatant disregard for his rules, basically charging interest but calling it something else.
It's a bit like being told God forbids the use of shovels, so you use a spade instead.
No virgins for your client I'm afraid.
I'm sure they will be eager to pay your fee for the advice though...
Tax Dragon wrote:(And Wolf, for asking the wrong question.)
I did so intentionally purely for us all to go on this journey of discovery. Honest...
Big thanks to Tax Dragon, SWAccountant and Vile Nortin Naipaan for clearing this all up.
I was aware that A Ltd, B Ltd and C Ltd inherited the ownership period all the way from TradeCo, but didn't quite appreciate that they also inherit the status of trading company, and holding company of a trading group, from them.
I thought A Ltd, B Ltd and C Ltd would have had to meet those conditions based on their own activities but thankfully not, which as Tax Dragon notes means I have asked the wrong question in the OP.
Cyber pints all round.
Surely if this is the most productive time for accountants we shouldn't see many responses as they won't be on AWeb...
For me it comes and goes randomly throughout the day. Nothing worse than when your brain starts working just before bed time and you get to think about tax whilst staring into the darkness.
Usually involves husband and wife shareholders. For whatever reason they need one of them to have dividends that doesn't tie to the shareholdings.
As a dividend waiver is basically a right to income, no capital value is passing over, then the settlements legislation kicks in and we don't get to use the husband/wife transfer exemption.
I've suggested using alphabet shares but it seems to fall on deaf ears I'm afraid.
You couldn't point me towards the legislation could you?
So are you saying that once they've acquired TradeCo, they are no longer trading, unless they continue to carry on activities with a view to acquiring interests in other trading companies?
So the provisions only apply to company's whose purpose is to seek out and invest in trading companies?
In which case A Ltd, B Ltd and C Ltd wouldn't be trading companies, as they don't continue to seek trading companies to invest in.
If A Ltd, B Ltd and C Ltd had owned the shares directly... they wouldn't be holding companies of a trading group as they don't own 51% so no ER and if my thinking above is correct, they wouldn't meet the "trading company" test in s165A as they don't continue to seek investment opportunities.
If that's not it then I give up...tell me the answer please :)
I'll have one last go...