Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 35

Meaning of "associated company"

Paragraph 35 of Schedule 4 defines what "associated company" means for the purposes of the CSOP (Company Share Option Plan) code.

• A company is an "associated company" of another if one controls the other, or both are controlled by the same person or persons
• The association test applies not only at the relevant point in time but also if the control relationship existed at any time within the previous twelve months
• The definition of "control" follows the rules set out in sections 450 and 451 of the Corporation Tax Act 2010
• This lookback period prevents companies from breaking an association shortly before a relevant event to circumvent the CSOP rules