Subsidiary struggle

We have a client company that has a subsidiary. Originally it owned 60% of the subsidiary with three other companies owning the remaining 40%. After a few years the other parties no longer wished to be involved and our client company acquired the remaining 40% of the shares.

All trading now takes place through the subsidiary the only function of the parent being to receive and pay out dividends. The profits of the subsidiary are some £200 000 to £300 000 a year meaning that the shares would have significant value.

We applied for clearance to distribute the subsidiary’s shares and wind up the holding company but this was turned down as the companies would both need to continue as trading companies for the clearance to apply.

We accept that this is correct but have been unable to see how we can sensibly remove the...