Corporation Tax Act 2009 section 474

Treatment of connected companies and partnerships for section 473

Section 474 explains how the "major interest" test in section 473 is applied when connected companies or partnerships are involved, by attributing interests and rights between connected companies and by apportioning partnership holdings among individual partners.

• When determining whether two persons together control a company or whether a person holds at least 40% of interests, rights and powers in a company, all interests, rights and powers of any connected company are attributed to the other company.
• Where a partnership holds property, rights or powers relevant to the major interest test, those are treated as apportioned among the individual partners in the same shares as the firm's profit-sharing arrangements for the relevant accounting period.
• Where a partnership is a creditor or debtor in respect of a money debt, each partner is treated as individually standing in the position of creditor or debtor to the extent of their share of the firm's profits or losses, for the purpose of determining whether a major interest exists and the tax consequences that follow.
• The general partner of a limited partnership that is a collective investment scheme is excluded from the attribution and apportionment rules described above.