Section 133L — Corporation Tax Act 2009: Associated companies

Associated companies 133L 1 For the purposes of sections 133A and 133C a company (“company B”) is associated with another company (“company A”) at a time (“ the relevant time ”) if any of the following 5 conditions is met.

2 The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.

3 The second condition is that there is a connection between company A and company B for the accounting period of company A in which the relevant time falls.

4 The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.

5 The fourth condition is that—

a the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition (see subsection (7)),

and b at the relevant time the third company has a major interest in company B.

6 The fifth condition is that—

a there is a connection (see subsection (9)) between company A and a third company for the accounting period of company A in which the relevant time falls, and b at the relevant time the third company has a major interest in company B.

7 In this section, the financial results of any two companies for any period meet the “consolidation condition” if—

a they are required to be comprised in group accounts, b they would be required to be comprised in group accounts but for the application of an exemption, or c they are in fact comprised in such accounts.

8 In subsection (7), “ group accounts ” means accounts prepared under—

a section 399 of the Companies Act 2006, or b any corresponding provision of the law of a territory outside the United Kingdom.

9 Sections 466 to 471 (companies connected for accounting period) apply for the purposes of this section.

10 In this section “ major interest ” has the same meaning as in Part 5 (see section 473).