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HMRC internal manual

Company Taxation Manual

HM Revenue & Customs
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Corporation Tax: small profits relief: associated company - main rules of association

CTM03710 onwards gives detailed guidance on determining whether a company has an associated company or how many associated companies a company has during its accounting period. Note that

  • an associated company is counted even if it is an associated company for part only of an accounting period (but see CTM03640)
  • two or more associated companies are counted even if they are associated companies for different parts of the accounting period
  • an associated company which has not carried on any trade or business (see CTM03590) at any time during the accounting period is disregarded - if it is an associated company for part only of the accounting period, the rule applies to any time during that part.