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Swimming with fishes

19 January 2010
Issue: 4239 / Categories: Forum & Feedback
A sole trader who operates as a fishmonger trades from premises and uses plant and machinery that is owned by a limited company of which he is the sole director and shareholder

I have a client who operates a fishmongers business as a sole trader. The premises where this activity takes place is owned by a separate limited company and my client is the sole director and shareholder of that company.

The limited company has fixed assets (the property plant and machinery and fixture and fittings) that are used by the fishmongers to carry out its trade. No income was generated from the limited company for the year to 30 April 2009 (although these accounts are still in draft format) the fishmongers simply use these assets to carry out the trade.

Would there be any disadvantages in making the limited company a partner with the fishmonger or is there any better way to structure the current arrangement?

Perhaps I should add that the limited company did operate as a wholesale fishmongers up until April 2007.

Query 17 534 – Codling

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