Corporation Tax Act 2010 section 18G

Attribution to persons of rights and powers of their partners

Section 18G limits the way rights and powers of partners are attributed when determining whether two companies are associated, specifically where those companies do not have a relationship of substantial commercial interdependence.

• This section applies when determining whether companies are associated under section 18E(4) and (5), but only where the two companies do not have a relationship of substantial commercial interdependence.
• When applying the "control" rules in section 451, any person to whom rights are attributed under subsections (4) and (5) of that section is treated as having no associates — effectively narrowing the scope of attribution.
• This prevents rights held by a person's partners or other associates from being counted when deciding whether one company controls another, provided the companies are not substantially commercially interdependent.
• The Treasury has the power to make regulations specifying the factors to be considered when deciding whether a relationship between two companies amounts to substantial commercial interdependence.