Corporation Tax Act 2010 section 706

Meaning of "linked" person

Section 706 defines when a person is considered "linked" to a company for the purposes of recovering unpaid corporation tax following a change in the company's ownership.

• A person is "linked" to a company when there has been a change in the company's ownership and either of two conditions is satisfied.
• Condition A is met where the person had control of the company at any time during the relevant period before the change in ownership.
• Condition B is met where the person is itself a company, and someone who had control of the first company (under Condition A) also had control of that second company at any time in the three years before the ownership change.
• If a person is found to be "linked" to the company under either condition, they may be assessed and charged for unpaid corporation tax under section 710(2) or section 713(2).