Take part in the SDLT discussion forum and give feedback. Sign up to submit that question you've wanted to ask or to share your experience or an outcome to a point of law or practice that may be puzzling the rest of us.

Home Forums Patrick Cannon Are the 50/50 owners of a company connected with it for tax purposes? Reply To: Are the 50/50 owners of a company connected with it for tax purposes?

#391
Patrick
Guest

It is likely that the two shareholders would have to act together because otherwise the company would be deadlocked. Therefore in the absence of any funny share rights given to one and not the other you can assume here that the two shareholders are connected with the company especially in view of the provisions of s416 and 417 and see also Steele v EVC [1996] STC 785 but if you wish to put the matter beyond doubt have then enter into a short shareholders’ agreement confirming that they must act together to control the company.