Corporation Tax Act 2009 section 835

"Related party"

Section 835 defines when a person is a "related party" in relation to a company for the purposes of the intangible fixed assets rules in Part 8 of the Act.

• A person is a related party if they control or hold a major interest in the company, or vice versa, or if both are under common control (excluding government and sovereign bodies)
• Where the company is a close company, any participator (or associate of a participator) in that company or in a company that controls it is a related party
• Two companies in the same group are related parties to each other
• Insolvency arrangements involving a non-individual entity are disregarded when determining whether the related party relationship exists