Section 18E — Corporation Tax Act 2010: Associated companies

Associated companies 18E 1 For the purposes of section 18D, a company is another company's associated company in an accounting period if it is an associated company (see subsection (4)) for any part of the accounting period.

2 The rule in subsection (1) applies to each of two or more associated companies even if they are associated companies for different parts of the accounting period.

3 But an associated company is ignored for the purposes of section 18D if—

a it has not carried on a trade or business at any time in the accounting period, or b it was an associated company for part only of the accounting period and has not carried on a trade or business at any time in that part of the accounting period.

4 For the purposes of this Part, a company is an associated company of another at any time when—

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

5 In subsection (4) “ control ” has the same meaning as in Part 10 (see sections 450 and 451).

6 In this section—

a subsection (3) is subject to section 18F, and b subsections (4) and (5) are subject to sections 18G to 18J.