CTM03940 - Small profits rate: financial year 2023 onwards: associated company definition: introduction
CTA10/S18E
A company is an associated company of another company if one has control of the other, or both are under the control of the same person or persons.聽 "Control" for this purpose has the same meaning as for close companies (CTA10/PART10, S450 and S451, see聽CTM60210).
A company may be an associated company regardless of where it is tax resident.
An associated company is counted even if it is an associated company for only part聽of an accounting period (but see鈥�CTM03955聽where the accounting period straddles 2 financial years where there is a change in the upper or lower limits or fractions).
An associated company which has not carried on any trade or business (see聽CTM03945) at any time during the accounting period is disregarded.聽 If that company is an associated company for only part of the accounting period and has not carried on any trade or business at any time during that part of the accounting period, it is also disregarded.