Section 1011 — Corporation Tax Act 2010: Meaning of “associated company” in section 1009

Meaning of “associated company” in section 1009 1011 1 For the purposes of section 1009 a company is an “associated company” of another at any time when—

a one has control of the other, or b both are under the control of the same person or persons.

2 For the purposes of subsection (1) a person controls a company if the person has power to secure that the affairs of the company are conducted in accordance with the person's wishes, and has that power—

a by holding shares in the company or any other company, b by possessing voting power in relation to the company or any other company, or c by virtue of any powers conferred by—

i the articles of association of the company or any other company, or ii any other document regulating the company or any other company.

3 Shares held by a company, and any voting power or other powers arising from the shares, must be ignored for the purposes of subsection (2) if—

a a profit on a sale of the shares would be treated as a trading receipt of a trade carried on by the company, and b the shares are not assets of an insurance company's long-term insurance fund.