I and a friend wish to join forces and create a company "C". At present we work for company "A" and "B" which we own separately.
We are both working to reduce the debts within companies A and B but it is likely I'll be in the position where mine will take longer to pay off.
A logical way forward seems where company C is owned jointly by company A and B. Then dividends created by company C can be used to pay off debts in companies A and B. I assume dividends disbursed in this way from one company to another don't attract corporation tax or do they. I hate to be taxed twice.
When the debt in say my company A is paid off, can company A be closed, or allowed to be dormant, where the 50% of shares of company C can pass directly to me?
I assume this must be a regular occurrence in the real world where two join forces with the need to pay existing company debts off.
I would be grateful for any help.