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Where Taxpayers and Advisers Meet

Associated companies?

Herbs16
Posts:79
Joined:Wed Aug 06, 2008 3:53 pm

Postby Herbs16 » Wed Jun 06, 2007 2:34 am

I have 2 companies, I own 50% of one, my have owns 50% and I own 51% in the other with my wife owning 49%. Are these associated please?

adi36
Posts:477
Joined:Wed Aug 06, 2008 3:23 pm

Postby adi36 » Wed Jun 06, 2007 3:06 am

Hi
It sounds as if they are all owned by connected parties and under common control by all : therefore they are associated. Thanks Adrian S

wamstax
Posts:2019
Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen
Contact:

Postby wamstax » Wed Jun 06, 2007 4:17 am

if "my have" is your wife then I agree with Adi but perhaps you can clarify that it is 50/50 with your wife also
regards
bill@wamstaxltd.com
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

Herbs16
Posts:79
Joined:Wed Aug 06, 2008 3:53 pm

Postby Herbs16 » Wed Jun 06, 2007 4:47 am

hi
thanks, yes my wife, does anyone know where I can find a clear definition of an associated company and what constitutes one?

adi36
Posts:477
Joined:Wed Aug 06, 2008 3:23 pm

Postby adi36 » Wed Jun 06, 2007 5:15 am

Hi
Here you go:-
CTM03710 - Corporation Tax: small companies: associated companies
For the purposes of ICTA88/S13 (4), a company is an associated company of another at a given time if at that time:

one of the companies has control of the other, or
both of the companies are under the control of the same person or persons ( CTM03730).
Control for this purpose is construed in accordance with ICTA88/S416. See the instructions at CTM60210 to CTM60230 regarding the meaning of control and the instructions at CTM03790 and CTM03810 regarding the concessional treatment of companies controlled by certain loan creditors or trustees.

http://www.hmrc.gov.uk/manuals/ctmanual/CTM03710.htm
Regards Adrian S


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