Annex 1: Minor changes in the law Change 3: Small profits rate and marginal relief: relaxations in the test for being an associated company: sections 25 and 28 to 30 and Schedule 1(section 99 of CAA)
This change enacts parts of ESC C9.
Under section 13(4) of ICTA two companies are associated, for the purpose of small companies’ relief, if one has control of the other, or if both are under the control of the same person. “Control” is construed in accordance with section 416 of ICTA (see now section 450 of this Act).
ESC C9 has four main parts, set out in paragraphs 2, 3, 4 and 5 of the concession.