2 min read
Definition
A group of companies exists where one company (the parent) controls one or more others (subsidiaries), usually through majority shareholdings. Groups can share certain tax reliefs and must prepare consolidated accounts once large enough.
In plain terms
It is a family of companies under common control. Structuring a business as a group can bring tax and commercial benefits, but also extra accounting obligations.
Why it matters for your company
Group status enables group relief — surrendering losses between companies — and affects thresholds and reporting. Understanding it matters when a business grows into multiple entities.
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