Section 400C — Corporation Tax Act 2009: Meaning of “associated with”

Meaning of “associated with” 400C 1 For the purposes of section 400A, a company (“company B”) is associated with company A at a time (“ the relevant time ”) during an accounting period of company A (“the accounting period”) if any of the following five 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.

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, 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 between company A and a third company for the accounting period, and b at the relevant time the third company has a major interest in company B.

7 In this paragraph 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 prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or b they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.

8 Section 466 (companies connected for an accounting period) applies for the purposes of this section.

9 In this section “ scheme ” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.