CTA10/S27, SI2011/1784

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.

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