[F1400CMeaning of “associated with”U.K.
(1)For the purposes of section 400A, a company (“company B”) is associated with company A at a time (“the relevant time”) during an accounting period of company A (“the accounting period”) if any of the following five conditions is met.
(2)The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.
(3)The second condition is that there is a connection between company A and company B for the accounting period.
(4)The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.
(5)The fourth condition is that—
(a)the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and
(b)at the relevant time the third company has a major interest in company B.
(6)The fifth condition is that—
(a)there is a connection between company A and a third company for the accounting period, and
(b)at the relevant time the third company has a major interest in company B.
(7)In this paragraph the financial results of any two companies for any period meet “the consolidation condition” if—
(a)they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or
(b)they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.
(8)Section 466 (companies connected for an accounting period) applies for the purposes of this section.
(9)In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.]
Textual Amendments
F1Ss. 400A-400C inserted (with effect in accordance with Sch. 14 para. 8 of the amending Act) by Finance Act 2010 (c. 13), Sch. 14 para. 6 (with Sch. 14 para. 9)
Modifications etc. (not altering text)
C1Pt. 5 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
C2Ss. 400-400C excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 112(1) (with s. 147, Sch. 17)