Creating association between 2 limited companies?

Little_Missy

Hi all,

I have a limited company and am planning to set up another. I am the sole director and sole shareholder of the existing company and this will also be the situation for the new company.

My query is - Will this cause an association between the two companies (e.g. for taxation purposes)?

Thanks in advance!

Aquamania

Little_Missy wrote: »

Hi all,

I have a limited company and am planning to set up another. I am the sole director and sole shareholder of the existing company and this will also be the situation for the new company.

My query is - Will this cause an association between the two companies (e.g. for taxation purposes)?

Thanks in advance!

No .

Little_Missy

Aquamania wrote: »

No .

Hi Aquamania,

You sound very sure!......Thanks

When would the situation of creating an association by being in control of both companies occur then?

Savvy_Sue

I think - but I might be quite wrong, and I'd suggest taking advice from your own accountant - that HMRC might wish to link the two if one or the other of your companies was nearing the limit for VAT registration, and you appeared to be keeping them separate in order to avoid VAT registration.

Savvy_Sue

Having found your other thread, I'm going to lock this one because I think we'll cover all the issues there.