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JillyB.
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- October 28, 2023 at 1:08 pm #694102
Acasta Ltd owns 75% of the ordinary share capital of Barge Ltd and 100% of the ordinary share capital of Coracle Ltd. Barge Ltd owns 75% of the ordinary share capital of Dhow Ltd. Coracle Ltd owns 51% of the ordinary share capital of Eight Ltd.
Which companies, along with Coracle Ltd, are within Acasta Ltd’s chargeable gains group?
A Barge Ltd, Dhow Ltd and Eight Ltd
B Barge Ltd only
C Barge Ltd and Dhow Ltd only
D None of the other companiesThere is another forum which partially answers this. Why is the answer C please??
in the other forum a tutor has stated ‘75% for losses direct and indirect interest in subsid.
75% direct and 50% indirect for gains groups.’ Therefore, for Dhow Ltd 75%*75%=56.25% and satisfies the over 50% for indirect gains. I don’t understand why Eight Ltd doesn’t also satisfy this?? 100%*51% =51% which is still over 50%??Thanks in advance,
ChloeOctober 30, 2023 at 9:32 am #694177I dont either as I get the same answer as you did!
October 30, 2023 at 9:33 am #694178Maybe its because C doesn’t own 75% of E and therefore cannot form a group with them directly.
These questions can be confusing
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