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 £15,000 each. At the start of the new tax year in April 2022, they are connected and will have one £15,000 levy allowance to share between all 3 companies.