BLM81050 - Sale of lessor companies and similar arrangements: partnerships: change in ownership of a partner company - meaning of ‘associated company of the relevant company’ (FA06/SCH10/PARA25)


In a case where there is a change in ownership of a partner company the rules identify the partner company and any company associated with that partner as the relevant associated companies of the relevant company.

Example: associated companies – change in ownership of partner

associated companies – change in ownership of partner

In this example there is a change in ownership of both partners A Ltd and B Ltd. The companies associated with A Ltd and B Ltd are C Ltd and D Ltd.

  • A Ltd is the partner company;
  • C Ltd is an associated company of A Ltd;
  • B Ltd is the other partner company in relation to which there is a qualifying change of ownership
  • D Ltd is an associated company of B Ltd.