Income Tax (Earnings and Pensions) Act 2003 Schedule 3 paragraph 47

Meaning of "associated company"

Paragraph 47 of Schedule 3 defines when two companies are considered "associated companies" for the purposes of Save As You Earn (SAYE) share option schemes.

• Two companies are "associated" if one controls the other, or if both are controlled by the same person or persons
• The association can be based on the current position or on the position at any time within the previous twelve months
• This definition applies throughout the SAYE code, except for the specific rule in paragraph 35(3) about when scheme-related employment ends
• Whether a person "controls" a company is determined by applying the detailed rules in sections 450 and 451 of the Corporation Tax Act 2010