Close companies
In this lesson, you'll learn what makes a company "close" for tax purposes and how to identify one—a crucial skill for Advanced Taxation. A close company is controlled by five or fewer participants (including their associates) or by any number of directors.
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In this lesson
- 0:00 Close companies: definition and control
- 0:33 Identifying close company status
- 1:22 Associates and participators explained
- 2:10 Parent company influence on subsidiary status
- 2:30 Worked example: determining close company status
About this lesson
You'll work through the definition of participants, understand how to aggregate shareholdings across family members and business partners, and apply this to real exam scenarios. By the end, you'll be able to determine whether a company meets the close company definition, which directly affects the tax treatment you'll apply in your ATX questions and case studies.
Duration: 5m
Transcript
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