New associated company rules

My client is one third shareholder in company A and a director (other shareholders are not connected).  He is also 50% shareholder with his wife in company B.  Company B provides consultancy and office services to company A.

Are we now caught by the new Assoc. co rules through the new "substantial commercial interdependence" criteria

  • As I understand the rules, you work from the majority holding outwards. Complicated of course if there are several related party groups holding control. So Company B is (if I understand it aright) owned 50-50 by the client and his wife. The client does not have a controlling interest in Company A in which his wife does not invest. So there is nothing to agglommerate here.  If the client had a relative owning 20% of Company A or if he had a "substantial commercial interdependence" with another shareholder or shareholders owning 20% then he would have a problem.


    But I'm an accountant not a lawyer.