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Kwackers
28th May 2010, 00:17
Does anybody have any resources to link me to for information regarding Holding Companies? Or answer this scenario/question?

If I own a Holding Company and this in turn is the parent company of others, how does taxation work?

Example:

I own Holding Company A

I own Businesses (3); A,B,C

A=£10,000 Net
B=£50,000 net
C=£75,000 Net

Does tax and accounts work as usual and the Holding company also needs a set of accounts drawn up for its earnings on the shares every year? Or, does the combined net profit of the holding companys' companies - expenses get put through, then pay tax?

IE: Do I do 4 sets of accounts (3 for the companies, one for the holding co) and pay tax on 4 seperate occassions, or do I pay via the holding company on behalf of the 3 other companies?

Thanks