What is a group structure?

A group structure typically consists of a parent company and one or more subsidiary companies.

The parent company owns shares in the subsidiaries and provides overall strategic control. The subsidiaries carry out the day-to-day trading activities, such as delivering services, employing staff and managing customer relationships.

Protecting assets

One of the key benefits of a group structure is the ability to protect valuable assets.

Important assets such as property, intellectual property or cash reserves can be held in the parent company rather than in the trading business. The trading subsidiaries then operate day to day while the parent company retains ownership of key assets.

This separation can reduce risk because if one trading company encounters financial difficulties, the assets held in the parent company are typically protected from operational liabilities.

For founders, directors and shareholders this structure can provide greater confidence that valuable assets are safeguarded as the business grows.

Potential Tax Advantages

A group structure can also create tax planning opportunities, depending on the circumstances. These could include:

• Transferring tax losses within a group structure is the ability to use group relief to transfer certain tax losses between companies. If one subsidiary makes a loss, those losses can often be offset against the taxable profits of another profitable company within the same group. This can help reduce the overall corporation tax liability for the group and improve cash flow during periods when individual entities perform differently.
• Substantial Shareholding Exemption (SSE) and dividend flexibility. With SSE, in certain situations where the parent company sells shares in a subsidiary, the gain may be exempt from corporation tax under the SSE rules.
• In terms of dividends, those paid from subsidiaries to the parent company are usually exempt from corporation tax. This allows profits to be moved around the group more efficiently to support investment, acquisitions or expansion.
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Tax rules in this area can be complex, so it’s important to take professional advice to ensure the structure works effectively for your business.

Clearer management and oversight

Running several businesses can quickly become complicated. A group structure can bring clarity and organisation by creating a central point for strategic decision-making while allowing each subsidiary to focus on its own market and operations.

The parent company board can set direction, monitor performance and oversee governance across the group. Consolidated reporting can also provide a clearer overall view of the business. For many growing companies, this structure improves visibility and helps leadership teams plan and manage growth more effectively.

Supporting growth



New businesses can be acquired and added as subsidiaries without disrupting existing operations. Equally, if a business unit is no longer aligned with your strategy, it may be easier to sell a subsidiary rather than restructuring the entire organisation.

This flexibility can make acquisitions, disposals and investment opportunities easier to manage and more attractive to investors. For businesses planning to scale, particularly across different sectors or markets, a group structure can provide a practical framework for growth.

When might a group structure be worth considering?

A group structure may be worth exploring if:

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• You operate multiple business activities or ventures
• Your business holds valuable assets that you want to protect
• You are planning acquisitions, disposals or investment
• You are preparing for future succession or ownership changes
• Your business is growing and becoming more complex

Every situation is different, so careful planning is essential before making structural changes.

While there are clear advantages, a group structure also brings additional responsibilities.

Operating multiple companies can increase administrative requirements, including additional reporting, governance and compliance obligations. It’s also important to ensure the structure is designed correctly from the outset.

Professional advice is particularly important if you are considering reorganising an existing business structure, as HMRC clearance may be required in certain circumstances.

How Wild & Co Chartered Accountants can help

At Wild & Co Chartered Accountants, we work closely with business owners to review whether a group structure is the right fit for their business. We take a practical, collaborative approach, helping clients understand the options available, assess the potential benefits and implement the right structure to support long-term growth.



Because every business is different, our focus is always on creating a structure that works for your ambitions, your team and your future plans. If you’re considering reorganising your business or exploring the benefits of a group structure, we would be happy to talk through the options with you.