The association

I act for two companies that are associated. Company A has acquired a business park and lets parts of the site out on a commercial basis and allows Company B (a fully trading company) to occupy the major part of the site on a rent-free basis. If Company B paid rent Company A would be a close investment company although this is not the reason why rent is not charged.

It seems that there should be a tax problem with this arrangement but I cannot think of one.

Readers’ thoughts are welcomed and I would appreciate comments on the tax implications and any pitfalls.

Query 17 813 – Rossi

Reply from PKIB

We are told that Company A has acquired a business park and parts of the site are let out on a commercial basis ...