Glossary Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
1

Connected company

Tolley

tax
Connected company

/kəˈnɛktɪd/ /ˈkʌmp(ə)ni/

Connected company
For the purposes of the tax treatment of loan relationships of companies, a company is connected to another where one company controls the other or both are controlled by the same person. In this respect control means the power of a person to secure that the affairs of a company are conducted in accordance with their wishes. If the parties are connected at any time in an accounting period, they are held to be connected for the whole of that period. 
 
Special tax rules exist for impairments and releases of debts between connected companies which mean there are circumstances where the accounting credits and debits arising on an impairment or release are either restricted for tax purposes or not required to be brought into account. 
tax
A Annual investment allowance B Balancing allowance Balancing charge Bare trust Benefits in kind Business asset disposal relief Business property relief (BPR) C Capital allowances Cash accounting scheme Collective redundancy Company residence Connected company Convertible securities Corporate capital losses Corporate interest restriction (CIR) Corporation Tax CT61 D DAC6: reportable cross-border arrangements De minimis Deferred consideration Diverted profits tax Dividend tax Double taxation relief E EC sales list EMI scheme Enterprise Investment Scheme (EIS) Enterprise Management Incentives (EMI) Entrepreneurs' relief Exports G Gift aid Gross interest I Imports Incorporation Incorporation relief Individual residence Input tax Input Tax/Capital Goods Scheme Input Tax/Partial Exemption Integral features Intrastat IPDI (Immediate post-death interest) IR35 L Loan notes M Mini One Stop Shop N Non-resident capital gains tax (NRCGT) O Off-payroll working Option to tax Output tax Overpayment relief P Patent box Place of supply Property income for individuals Purchase of own shares R Registration and deregistration Remittance Remittance basis Research & Development Relief (R&D) Residence nil rate band (RNRB) Residual input tax Reverse charge Reversionary interest Rollover relief S Scale charges Seed Enterprise Investment Scheme (SEIS) Self-billing Settlor Share for share exchange Share incentive plan Stamp Duty Reserve Tax Substantial Shareholding Exemption (SSE) T Tax relief Tax relief on pension contributions Taxable benefit Termination payments The potentially exempt transfer (PET) Transactions in securities (TiS) Transactions in UK land Transfer of a going concern (TOGC) Transfer of assets abroad Transfer pricing TWDV (Tax written down value) U UK continental shelf Underlying tax V Vulnerable persons trust W Withholding tax