F1Part 21ARisk transfer schemes
General
937KMeaning of “associated with”
(1)
For the purposes of this Part a company (“company B”) is associated with another company (“company A”) at a time (“ the relevant time ”) if any of the following five conditions is met.
(2)
The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.
(3)
The second condition is that there is a connection between company A and company B for the accounting period of company A in which the relevant time falls.
(4)
The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.
(5)
The fourth condition is that—
(a)
the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and
(b)
at the relevant time the third company has a major interest in company B.
(6)
The fifth condition is that—
(a)
there is a connection between company A and a third company for the accounting period of company A in which the relevant time falls, and
(b)
at the relevant time the third company has a major interest in company B.
(7)
In this section the financial results of any two companies for any period meet “the consolidation condition” if—
(a)
they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or
(b)
they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.
(8)
The following provisions apply for the purposes of this section—
sections 466 to 471 of CTA 2009 (companies connected for accounting period), and
sections 473 and 474 of CTA 2009 (meaning of “major interest”).