Hi,
A company is an ‘associated company’ of another company if either:
. One of the two companies has control of the other.
. Both companies are under the control of the same person or persons.
Guidance on the definition of ‘control’ can be found at
CTM60220 - Close companies: tests: control - over the company's affairs.
Please see the example at the bottom of
CTM03770, which is pertinent to your situation.
It does not matter for tax purposes whether the equity release is paid into your wife’s sole account. What is important is whether any of the money invested in your wife’s company legally belongs to you.
If you need more information than that provided in HMRC guidance, we suggest that you take advice from a tax professional.
Thank you.