C4C3C2C1F1PART 3ACompanies with small profits

Annotations:
Amendments (Textual)
F1

Pt. 3A inserted (with effect in accordance with Sch. 1 para. 34 of the amending Act) by Finance Act 2021 (c. 26), Sch. 1 para. 3

Modifications etc. (not altering text)
C2

Pt. 3A applied (with effect in accordance with Sch. 1 para. 33 of the amending Act) by 2001 c. 2, s. 99(4A) (as inserted by Finance Act 2021 (c. 26), Sch. 1 para. 16(3))

C1

Pt. 3A applied (with effect in accordance with Sch. 1 para. 33 of the amending Act) by S.I. 1998/3175, reg. 2(2A) (as inserted by Finance Act 2021 (c. 26), Sch. 1 para. 13(2)(c))

The lower limit and the upper limit

18EAssociated companies

1

For the purposes of section 18D, a company is another company's associated company in an accounting period if it is an associated company (see subsection (4)) for any part of the accounting period.

2

The rule in subsection (1) applies to each of two or more associated companies even if they are associated companies for different parts of the accounting period.

3

But an associated company is ignored for the purposes of section 18D if—

a

it has not carried on a trade or business at any time in the accounting period, or

b

it was an associated company for part only of the accounting period and has not carried on a trade or business at any time in that part of the accounting period.

4

For the purposes of this Part, a company is an associated company of another at any time when—

a

one of the two has control of the other, or

b

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

5

In subsection (4) “control” has the same meaning as in Part 10 (see sections 450 and 451).

6

In this section—

a

subsection (3) is subject to section 18F, and

b

subsections (4) and (5) are subject to sections 18G to 18J.