I am currently dealing with the corporate tax return for one of my clients and would appreciate some more information about the new associated company rules.

I am dealing with the accounting year of 31 August 2023. My client’s company is owned 100% by John. He also has 75% ownership of another company with an unrelated business partner, but due to recent hardship this business stopped trading on 1 May 2023 and is currently dormant.

John also has two daughters, Sara and Emma. They each have their own company but in completely different industries. To help Emma when she started the business, John loaned £100,000 personally directly to Emma’s new company. To provide similar assistance to Sara, he allowed her to trade from his commercial premises rent free.