CREC052100 | Eligible expenditure: meaning of 'connected'

From HM Revenue & Customs · Creative Industries Expenditure Credit Manual

Section 1122 Corporation Tax Act (CTA) 2010

‘Connected’ has the meaning given by section 1122 CTA 2010. Broadly:

Content shown with reduced fidelity

A company is connected with another company if: the same person has control of both, or a person (person A) has control of one and persons connected with person A, or person A and persons connected with person A, have control of the other; or a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person (person A) with whom person A is connected. A company is connected with another person if that person (person A) has control of it or if person A and persons connected with Person A together have control of it. Any two or more persons acting together to secure or exercise control of a company are treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company. A person is connected with: an individual if that person is the individual’s spouse or civil partner, or is a relative, or the spouse or civil partner of a relative, of the individual or of the individual’s spouse or civil partner any person (person A) with whom person A is in partnership, and with the spouse or civil partner or relative of any individual with whom person A is in partnership

It is also possible to be connected via settlements and trusts – see section 1122(6) CTA 2010.