Marginal relief from corporation tax; when are companies associated?
In Ghelanis Superstore v HMRC (TC03251 – 22 January 2014) the question to be determined by the tribunal was whether Ghelanis was associated with a company called Eco Efficient Energy Ltd (EEE). If it was not marginal relief from corporation tax was available under ICTA 1988 s 13.
The issued share capital of Ghelanis and EEE was owned by the same seven shareholders (named A to G for convenience). The two companies were associated if they were controlled by the same person or persons (ICTA 1988 s 416).
Ghelanis contended that the greater part of the share capital of EEE was owned by B and C together; therefore the two companies were not associated as Ghelanis was not controlled by these same persons.
However the tribunal pointed out that the test for control includes any persons...
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Marginal relief from corporation tax; when are companies associated?
In Ghelanis Superstore v HMRC (TC03251 – 22 January 2014) the question to be determined by the tribunal was whether Ghelanis was associated with a company called Eco Efficient Energy Ltd (EEE). If it was not marginal relief from corporation tax was available under ICTA 1988 s 13.
The issued share capital of Ghelanis and EEE was owned by the same seven shareholders (named A to G for convenience). The two companies were associated if they were controlled by the same person or persons (ICTA 1988 s 416).
Ghelanis contended that the greater part of the share capital of EEE was owned by B and C together; therefore the two companies were not associated as Ghelanis was not controlled by these same persons.
However the tribunal pointed out that the test for control includes any persons...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
