Group company structure question and advice

[3 MORE YEARS]

Hello Everyone,

If you can take the company structure in the image below. I have been asking an accountant regarding if the structure below and if it should be 2 company or 3 company structure - the "TopCo" being one limited company. And I haven't had a "proper" answer that I have understood. It may be my fault.

Anyway, I believe he said it could be 2 companies or 3 companies. So in 2 company scenario I assume the TopCo would not exist, and I as an individual will hold shares in the 2 companies. Now, I have plans on doing other projects in the near future, so what is the advantages and disadvantages of having a 3 company structure like the group below, vs a 2 company structure?

One other question. If I already had an existing limited company that has some trading history, can it in become the "TopCo" in the diagram below without too much complication?

Please explain it if you are able to without jargon. Much appreciated. Thank you.

 

[The Byre]

Is there some special reason for having such a complex and convoluted structure?

Is this a multi-million pound enterprise that requires such measures to be taken?

(At least your accountant will be happy with the fees for preparing three sets of accounts every year!)