Q. Are the following companies associated for corporation tax purposes? The shareholding in each company is set out as follows. Mr & Mrs Bassi are husband and wife.

Doaba Ltd

 Mr Bassi – 50% of shares and voting rights

Mrs Bassi – 50% of shares and voting rights

Malwa Ltd

Mr Bassi – 100% shares and voting rights

Other companies

Malwa Ltd owns 80% of L Ltd.

L Ltd owns 60% of A Ltd and 45% of B Ltd

A Ltd has been dormant for two years

A. A company is an associated company of another where one has control of the other, or both are under the control of the same person or persons as per section 18E, Corporation Tax Act 2010 (CTA 2010).