Corporation Tax Act 2009 section 168

Connected persons

Section 168 defines who counts as "connected persons" for the purposes of valuing trading stock when a trade ceases, specifically in relation to sections 164 to 167.

• Two persons are connected if they meet the general connected persons definition in section 1122 of CTA 2010, or if one is a firm and the other has a right to a share of that firm's assets or income
• A person is connected with a body corporate if that person has control over it, and two firms are connected if a third party has a right to a share of assets or income in both
• Two bodies corporate, or a firm and a body corporate, are connected if a third party has control over both of them
• This definition is an exception to the general rule that a firm is not treated as a separate entity for tax purposes — where a firm is connected with the buyer or seller of stock, market value rules under section 166 apply, though an election under section 167 may be available