Corporation Tax Act 2010 section 1069

Additional persons treated as participators

Section 1069 extends the meaning of "participator" for the purposes of the distribution rules in sections 1064 to 1067, so that associates of participators and participators in controlling companies are also caught by those rules.

• Any reference to a participator in sections 1064 to 1067 automatically includes an associate of that participator.
• Where company A controls company B, anyone who is a participator in A (or an associate of a participator in A) is also treated as a participator in B.
• This widens the scope of the rules that treat certain close company expenses as distributions and the rules about companies acting in concert.
• The terms "associate", "control" and "participator" carry the same meanings as in the close companies legislation in Part 10 of the Act.