Commentary

V7.189E Disaggregation—family business arrangements

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.189E Disaggregation—family business arrangements

Part V7 Tax planning | Commentary

V7.189E Disaggregation—family business arrangements

It is more difficult for HMRC to combine businesses where the individuals are not members of the same family. This is because one of the key arguments that could be put forward for individuals who are not related to each other is as follows:

“The main reason for having two separate businesses is not the avoidance of VAT but because we want to ensure that we are each rewarded with profits according to our own efforts'.

In other words, there are clear commercial reasons for separate trading, even though the arrangement may appear artificial.

However, the reasons why many

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial