Citation, commencement and effect

1. —(1) This Order may be cited as the Corporation Tax Act 2010 (Factors Determining Substantial Commercial Interdependence) Order 2011.

(2) This Order shall come into force on 11th August 2011.

(3) This Order shall have effect for accounting periods ending on or after 1st April 2011.

Factors taken into account in determining substantial commercial interdependence

2. In determining for the purposes of section 27 of the Corporation Tax Act 2010 (attribution to persons of rights and powers of their associates) whether a relationship between two companies amounts to “substantial commercial interdependence”, the following factors are to be taken into account—

(a) the degree to which the companies are financially interdependent,

(b) the degree to which the companies are economically interdependent, and

(c) the degree to which the companies are organisationally interdependent.

“Financially interdependent”

3. Two companies are “financially interdependent” for the purposes of article 2 if (in particular)—

(a) one gives financial support (directly or indirectly) to the other, or

(b) each has a financial interest in the affairs of the same business.

“Economically interdependent”

4. Two companies are “economically interdependent” for the purposes of article 2 if (in particular)—

(a) the companies seek to realise the same economic objective,

(b) the activities of one benefit the other, or

(c) the companies have common customers.

“Organisationally interdependent”

5. Two companies are “organisationally interdependent” for the purposes of article 2 if (in particular) the businesses of the companies have or use—

(a) common management,

(b) common employees,

(c) common premises, or

(d) common equipment.