Corporation Tax Act 2010 section 357YNB

Meaning of "related company"

Section 357YNB defines what constitutes a "related company" for the purposes of the restitution interest rules that apply following a winding up or dissolution of a transferor company.

• A company is a "related company" if, during the relevant period, it was a member of the same group as the transferor — this applies in two distinct contexts depending on whether the transferor was dissolved or wound up
• Two companies are members of the same group if one is a 51% subsidiary of the other, or both are 51% subsidiaries of a third company
• Where the transferor was dissolved (with or without a prior winding up), the relevant period starts 12 months before the dissolution or the commencement of winding up, and ends when the restitution interest amount is paid or becomes payable, whichever is later
• Where the transferor was wound up, the relevant period starts 12 months before the commencement of winding up and ends when the restitution interest amount is paid or becomes payable, whichever is later