Income Tax (Earnings and Pensions) Act 2003 section 94

Meaning of "associated company" [ITEPA 2003 Sch 2 para 94]

Section 94 defines what "associated company" means for the purposes of the Share Incentive Plan (SIP) code, setting out the control-based test used to determine whether two companies are associated.

• Two companies are associated if one controls the other, or if both are controlled by the same person or persons
• Whether a person controls a company is determined using the rules in sections 450 and 451 of the Corporation Tax Act 2010
• This definition applies throughout the SIP code, except in relation to the prohibited shares rules under paragraph 29
• The test is applied at a specific point in time, meaning the association is assessed as at the relevant date in question