Corporation Tax Act 2010 section 18E

Associated companies

Section 18E defines what constitutes an "associated company" for the purposes of dividing the lower and upper profit limits used to determine the small profits rate of corporation tax.

• A company is another's associated company in an accounting period if, at any point during that period, one controls the other or both are controlled by the same person or persons.
• Multiple companies can each count as associated even if they qualify as associated for different parts of the accounting period.
• An associated company is ignored when counting associates if it has not carried on any trade or business during the relevant accounting period (or during the part of the period for which it was associated).
• The definition of "control" follows the same meaning used for close company rules in Part 10 of the Act, and additional provisions in sections 18F to 18J may modify how association is determined.