Corporation Tax Act 2009 section 400C

Meaning of "associated with"

Section 400C defines when two companies are treated as "associated with" each other for the purposes of the rules in section 400A on adjustments for changes in an index under relevant hedging schemes.

• Two companies are associated if they are in the same consolidated group accounts, are connected companies, or one holds a major interest in the other.
• Association can also arise indirectly through a third company that is consolidated with, or connected to, company A and holds a major interest in company B.
• The "consolidation condition" is met where two companies' results must be included in group accounts under section 399 of the Companies Act 2006, or would be but for an available exemption.
• "Scheme" is defined very broadly to include any arrangements or understanding, whether or not legally enforceable, and whether involving one or more transactions.