A joint HMT/HMRC consultation document was published on 29 October 2009 seeking views on a proposal for reforming the associated company rules as they apply to the small companies' rate of Corporation Tax.

The Government wishes to understand whether the option presented would benefit business by providing a more targeted test to establish those companies that form an economic whole and thus whose profits should be considered collectively in establishing the rate of corporation tax that applies to them. This consultation is primarily for representative bodies of companies that would be affected and their tax advisers. However all interested parties can give their views.

The consultation document can be accessed at http://www.hm-treasury.gov.uk/d/consult_simplification.pdf

Responses are to be sent to The Related Companies Simplification Review Team, Room 2/N2, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ by 22 January 2010.