Corporation Tax Act 2010 section 718

Meaning of "associated company"

Section 718 defines what an "associated company" means for the purposes of recovering unpaid corporation tax following a change in company ownership.

• An associated company is one that controls company Y, is controlled by company Y, or is under common control with company Y.
• The association can exist at the time of the tax assessment or at any earlier time after the change in ownership of company Y.
• It does not matter when the associated company was formed — the definition applies regardless of its date of incorporation.
• This definition is relevant only for the recovery of unpaid corporation tax under sections 713 and 714 of the Corporation Tax Act 2010.