Part 9Leasing plant or machinery

Chapter 4Sales of lessors: leasing business carried on by a company in partnership

Interpretation

430“Associated company”

1

This section gives the meaning of “associated company” for the purposes of this Chapter.

2

A company is an “associated company” of another company on any day if, at the start of that day—

a

one of the two has control of the other, or

b

both are under the control of the same person or persons.

3

Section 450 (meaning of “control” for the purposes of Part 10 (close companies)) applies for the purposes of subsection (2).

4

Subsections (5) and (6) apply if, at the start of any day, a company (“the consortium company”)—

a

is owned by a consortium, or

b

is a qualifying 90% subsidiary of a company owned by a consortium.

5

If there is any qualifying change in the consortium company's interest in a business on that day, references to an associated company of the consortium company on that day include—

a

any member of the consortium at the start of that day, and

b

any company which is an associated company of any such member on that day.

6

If there is any qualifying change of ownership in relation to the consortium company on that day, but there is no qualifying change in its interest in a business on that day, references to an associated company of the consortium company on that day include—

a

any relevant member of the consortium on that day, and

b

any company which is an associated company of any relevant member of the consortium on that day.

7

For the purposes of subsection (6) a member of the consortium is a “relevant” member on the day on which the qualifying change of ownership occurs if—

a

it is a member of the consortium at the start of the day, and

b

the change is a relevant change within section 394(2), (6) or (8) (consortium relationships) in relation to which the member is regarded as “E” for the purposes of section 394.