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.