Alan Pink considers whether different trades should be held in a group of companies or in stand-alone companies.
Where the same people are carrying on two or more different trades, for all kinds of reasons it’s often a good idea for those different trades to be carried on in different companies.
For example, it may be wished to ‘ring fence’ liabilities of one trade, so that they do not affect the others if anything goes wrong. Or perhaps you might want to put the different trades into different companies (rather than having them all in one company) so that the performance of the different trades can be more easily measured. Or perhaps you have a view to the possible separate sale of one of the trades in due course.
For whatever reason, I will be assuming in what follows that there are different companies carrying