Valid from 19/07/2006
26(1)A company is an “associated company” of another company on any day if, at the start of that day,—U.K.
(a)one of the two has control of the other, or
(b)both are under the control of the same person or persons,
and for this purpose “control” is to be read in accordance with section 416 of ICTA.
(2)Sub-paragraphs (3) and (4) 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.
(3)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.
(4)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 the relevant 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.
(5)For this purpose a member of the consortium is a “relevant” member on any day if—
(a)it is a member of the consortium at the start of the day, and
(b)the qualifying change of ownership occurs on that day in a case where the member of the consortium is regarded as “company E” for the purposes of paragraph 12 (consortium relationships).
(6)This paragraph applies for the purposes of this Part of this Schedule.