Q&As

Is a wife, Mrs X, connected (within section 1122 of the Corporation Tax Act 2010 (CTA 2010)) with a company wholly owned by her husband, Mr X? Are all the possible causes of connection within CTA 2010, s 1122 necessary?

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Published on LexisPSL on 13/12/2017

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • Is a wife, Mrs X, connected (within section 1122 of the Corporation Tax Act 2010 (CTA 2010)) with a company wholly owned by her husband, Mr X? Are all the possible causes of connection within CTA 2010, s 1122 necessary?

Is a wife, Mrs X, connected (within section 1122 of the Corporation Tax Act 2010 (CTA 2010)) with a company wholly owned by her husband, Mr X? Are all the possible causes of connection within CTA 2010, s 1122 necessary?

The meaning of connected persons is applied in various tax provisions. It is important to consider the detailed legislation set out in sections 1122–1123 of the Corporation Tax Act 2010 (CTA 2010) to establish if a company is connected with another person for a particular tax provision.

A company is connected with another person (A) if:

  1. A has control of the company, or

  2. A together with persons connected with A have control of the company

An individual (A) is connected with another individual (B) if A is B’s spouse.

Control for these purposes is set out in CTA 2010, s 450. A person (P) is treated as having control of a company (C) if P:

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