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 companies
There 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,
Chloe
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I dont either as I get the same answer as you did!
Maybe 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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