close company?

crazyITman

If I am a 50:50 shareholder and 50:50 director of one company, if I start another company where I am a 100% shareholder and 100% director, would they be deemed to be close companies? 

I believe not as I have an equal but not controlling stake in the first company. 

tacpot12

They would be deemed to be close companies. See: CTM60060 - Close companies: general: broad definition - HMRC internal manual - GOV.UK

Jeremy535897

Any company owned by one person is a close company. I suspect that what you are really asking is whether the two companies are connected companies. That will depend on who owns the other 50% of the first company.

crazyITman

Jeremy535897 said:

I suspect that what you are really asking is whether the two companies are connected companies. That will depend on who owns the other 50% of the first company.

Yes - this is perhaps the actual question. The other 50% owner is a sibling. 

poseidon1

Your simple question should have been 'who are connected persons for closed company purposes' - answer -

https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca11630