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Creating association between 2 limited companies?

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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!

Comments

  • Aquamania
    Aquamania Posts: 2,112 Forumite
    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 .
  • 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
    Savvy_Sue Posts: 47,312 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
    Signature removed for peace of mind
  • Savvy_Sue
    Savvy_Sue Posts: 47,312 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Having found your other thread, I'm going to lock this one because I think we'll cover all the issues there.
    Signature removed for peace of mind
This discussion has been closed.
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