CFM81030 | Old rules: loan relationships: connected persons: connection through control

Connection through control

This guidance applies only to accounting periods starting before 1 January 2005

Companies were connected under FA96/S87(3) where at any time in an accounting period

• one party to the loan relationship controlled the other, or

• the two parties were under common control.

There was an exception: FA96/S87(4) stated that companies were not connected if they were under the common control of

• the Crown

• a Minister of the Crown

• a government department

• a Northern Ireland department

• a foreign sovereign power

• an international organisation (defined at FA96/S103 as one to which two or more sovereign powers, or their governments, belong), or

• Scottish Ministers (S117 Scotland Act 1998).

These rules are now at CTA09/S466 and are essentially unchanged (CFM35110).