OT21010 - Corporation Tax Ring Fence and Supplementary Charge

Associated Companies

The definition of oil extraction activities includes a reference to the activities of a company where the licence is held by an associated company.

S502(3) provides that two companies are associated with one another if one is a 51% subsidiary of the other or if each is a 51% subsidiary of a third company or if one of them is owned by a consortium of which the other is a member.

By S502(4) companies can also be associated with one another if one controls the other or if both are controlled by the same person or persons. Control for these purposes is construed in accordance with s416 ICTA.