CTM03750 | Corporation Tax: small profits rate: attribution to a person of rights and powers of associates - commercial interdependence with companies controlled by associates: accounting periods ending on or after 1 April 2011
From HM Revenue & Customs · Company Taxation Manual
and SI2011/1784,
This legislation was introduced by with effect in relation to accounting periods ending on or after 1 April 2011, subject to transitional provisions for an accounting period that begins before but ends after that date: to (5). For guidance on the position before that, see .
The rights a person (or their nominee) possesses or is entitled to acquire are those relevant to deciding if a person or group of persons has control of a company.
The rights in separate companies held by persons with whom they are linked (that is associates - see ) are also attributed in some limited circumstances. This is when there is substantial commercial interdependence between the companies concerned.
The statutory rules are set out in and SI2011/1784. The practical application of the rules will vary depending on the facts of each particular case.
CTM03775 onwards gives more details and some examples.
If applies the rights attributed to a person are those of:
associates (see ), and
any companies which the person controls or the person and associates together control.
In both cases, the rights attributable will be inclusive of any rights of their nominees which must be attributed to the associate or company concerned - see . Rights of 'associates of associates', that is, those attributed to an associate by virtue of are not included.