Corporation Tax Act 2010 section 1062

Connected persons

Section 1062 sets out the rules for determining whether a person is connected with a company for the purposes of the intangible fixed assets provisions in Chapter 3.

• A person is connected with a company if they directly or indirectly hold, or are entitled to acquire, more than 30% of the company's ordinary share capital, its combined loan and share capital, or its voting power.
• Loan capital acquired in the ordinary course of a money-lending business is disregarded, provided the lender takes no part in managing or running the company.
• A person is also connected if they hold or can acquire rights entitling them to receive more than 30% of the company's assets available for distribution to equity holders on a winding up or in any other circumstances.
• Any person who has control of a company is automatically treated as connected with it.