A company is treated as an associated company of another at a particular time if one of the two has control of the other or both are under the control of the same person (or persons).
•From 1 April 2011, there are new rules that determine ‘control’ for the purposes of the small profits rate: CTA10/S18. Under the new rules, attribution of rights held by associates of participators only applies where there is ‘substantial commercial interdependence’ between the two companies concerned.
Want to read more?
This content requires a Croner-i Tax and Accounting subscription.