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A company owned by a father and daughter provides commercial loans and manages properties and collects rents. Activities include those carried out for family members and their businesses
Our client company is owned by a father and his daughter. It has two principal activities those being the provision of loans on a commercial basis and the management of commercial properties and collection of rents.
Both trades have been in existence for many years. The properties managed are either owned by: family members; family-controlled companies (not associated for the purposes of CTA 2010 s 25); or unrelated third parties. The company does not have any fixed assets of its own. Revenue reserves are about £1m.
As well as third-party lending the company has made a sizeable loan to the daughter and various loans to the other family-controlled companies all at commercial rates of interest.
Father has 95 000 ordinary £1 shares and daughter owns the remaining 5 000. Father has credit on his loan account of £700 000 and the company intends to issue 700...
