Renting the office from your father, buying from your spouse’s firm, paying a sister concern for services — normal in family business, and regulated in company law and tax law both.

Who counts as related

Directors and their relatives, entities where directors or relatives hold influence, holding and subsidiary companies, and the wider list the statutes define. Most family-business counterparties qualify.

What the company law expects

  • Board consent for specified transaction types, with interested directors abstaining
  • Shareholder approval past prescribed thresholds
  • Arm’s-length, ordinary-course transactions enjoy relaxations — but the arm’s-length character must be demonstrable
  • Disclosure in the accounts and board report

What the tax law adds

Excessive payments to related parties can be disallowed; specified domestic transaction rules apply past thresholds. The common thread: price like strangers, document like lawyers.

The practical file

Agreements for every recurring arrangement, comparable-price notes, board approvals on record. Ten pages that turn an assessment battle into a routine question.

We paper family-business arrangements properly — compliance · tax planning.