At AccounTax Zone, we don’t just help construction businesses stay compliant — we help them plan smarter. One client we worked with had several growing arms of their business: a main contracting company, a plant hire operation, and a small property development arm. Each was running separately, and all profits were being taxed at full rates.
While the business was growing, they were missing out on some major tax-saving opportunities.
The Problem: Missed Tax Efficiencies Across Separate Entities
The client had never thought about forming a formal group structure. So, when one arm of the business made a loss, they couldn’t offset it against the profits of the others. This meant they were paying more tax than necessary and missing out on strategic benefits like succession planning and internal asset transfers without extra tax costs.
They came to us wondering if there was a better way to structure things — and there was.
Our Fix: A Strategic Group Structure
We sat down with them to fully understand how their businesses interacted and where the opportunities were. Then we:
- Set up a holding company to sit above the different businesses.
- Formed a group structure that allowed for group relief, so losses in one company could offset profits in another.
- Planned ahead for succession, giving them a cleaner, more tax-efficient way to pass on the business when the time comes.
- Helped with asset planning, so plant, machinery, and other shared resources could be moved between companies without triggering unnecessary tax bills.
The Result: Lower Tax, Better Planning, Stronger Business
With the new structure in place, they saw:
- A reduced overall corporation tax bill
- Clearer financial separation between business areas
- Flexibility to grow and restructure in the future
- A smooth roadmap for passing the business down to family or selling parts off later
Smart structuring doesn’t just reduce tax — it makes your entire business more resilient. If you’ve got more than one company (or are thinking about starting another), setting up a group structure could be a game-changer.
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Need help figuring out if it’s right for your setup? Give us a shout — we’d be happy to look into it with you.
