Part 5Loan Relationships
Chapter 12Special rules for particular kinds of securities
Deeply discounted securities: connected companies and close companies
408Companies connected for section 407
(1)
For the purposes of section 407 there is a connection between two companies for an accounting period if condition A or B is met.
(2)
Condition A is that there is a time in the period when one of the companies has control of, or a major interest in, the other.
(3)
Condition B is that there is a time in the period when both companies are under the control of the same person.
(4)
Section 472 (meaning of “control”) applies for the purposes of this section.
(5)
For the meaning of “major interest”, see section 473.