Associated companies

[andrewcrane]

Mr X owns 'A Limited' and 'B Limited'. 'B Limited' is currently dormant. Mr X sells 'A Limited' to another company. He then starts to trade under 'B Limited'.

Are 'A Limited' and 'B Limited' associated for tax purposes even though company 'A Limited' was no longer in Mr X's control at the point that 'B Limited' started to trade?

Thanks

[johnfkavanagh]

Broadly, the issue is whether the companies are associated with one another during a particular accounting period. The fact that they may not have been associated throughout the period is not of itself relevant for small companies rate, etc.

John Kavanagh
UK Tax Consulting Ltd
Chartered Tax Advisers
www.uktaxconsulting.co.uk
mail@uktaxconsulting.com
Tel: 020 7060 1660
Fax: 020 7060 1663