Corporation Tax Act 2009 section 839

Rights and powers held jointly

Section 839 clarifies that rights and powers relevant to the related party rules include those held or exercised jointly with others.

• When determining whether parties are related, any rights or powers a person holds count even if they can only be exercised jointly with one or more other persons.
• This also applies to rights or powers that a person is entitled to acquire in the future, provided they will be jointly exercisable once acquired.
• The effect is to widen the scope of the related party tests, so that joint holdings cannot be used to avoid related party status.
• An exception applies for partnerships, which are dealt with separately under section 840.