CFM37280 - Loan relationships: special types of security: deeply discounted securities and close companies: participation: example
Participation: example
FH Ltd is a close company with £100 issued ordinary share capital, held as follows.
- Jay Brown - 25
- Marby Ltd - 25
- L Smith - 25
- KL Ltd - 25
FH Ltd issues relevant discounted securities with redemption amounts totalling £10,000 as shown below.
- Jay Brown - £1,000
- K Brown (son of Jay Brown) - £5,000
- Marby Ltd - £2,000
- Kibbo Ltd ( subsidiary of Marby Ltd) - £1,000
- GT Ltd ( company 100% owned by L Smith) - £1,000
CTA09/409 applies to all the creditors.
- Jay Brown - Participator
- K Brown - Associate of participator
- Marby Ltd - Participator
- Kibbo Ltd - Company controlled by a participator
- GT Ltd - Company controlled by a participator