ALM13100 - Mergers, acquisitions and joint ventures: example 1
Two pre-existing companies jointly form a new company
In July 2021, Company A and Company B, who have previously had no connection, form a new Company C. For the remainder of tax year 2021 to 2022, all 3 companies will have separate levy allowances of 拢15,000 each. At the start of the new tax year in April 2022, they are connected and will have one 拢15,000 levy allowance to share between all 3 companies.