411U.K.For section 575 (connected persons) substitute—
“575Meaning of “connected” persons
(1)For the purposes of this Act whether a person is connected with another is determined in accordance with this section unless otherwise indicated.
(2)An individual (“A”) is connected with another individual (“B”) if—
(a)A is B's spouse or civil partner,
(b)A is a relative of B,
(c)A is the spouse or civil partner of a relative of B,
(d)A is a relative of B's spouse or civil partner, or
(e)A is the spouse or civil partner of a relative of B's spouse or civil partner.
(3)A person, in the capacity as trustee of a settlement, is connected with—
(a)any individual who is a settlor in relation to the settlement,
(b)any person connected with such an individual,
(c)any close company whose participators include the trustees of the settlement,
(d)any non-UK resident company which, if it were UK resident, would be a close company whose participators include the trustees of the settlement,
(e)any body corporate controlled (within the meaning of section 574) by a company within paragraph or ,
(f)if the settlement is the principal settlement in relation to one or more sub-fund settlements, a person in the capacity as trustee of such a sub-fund settlement, and
(g)if the settlement is a sub-fund settlement in relation to a principal settlement, a person in the capacity as trustee of any other sub-fund settlements in relation to the principal settlement.
(4)A person who is a partner in a partnership is connected with—
(a)any partner in the partnership,
(b)the spouse or civil partner of any individual who is a partner in the partnership, and
(c)a relative of any individual who is a partner in the partnership.
But this subsection does not apply in relation to acquisitions or disposals of assets of the partnership pursuant to genuine commercial arrangements.
(5)A company is connected with another company if—
(a)the same person has control of both companies,
(b)a person (“A”) has control of one company and persons connected with A have control of the other company,
(c)A has control of one company and A together with persons connected with A have control of the other company, or
(d)a group of two or more persons has control of both companies and the groups either consist of the same persons or could be so regarded if (in one or more cases) a member of either group were replaced by a person with whom the member is connected.
(6)A company is connected with another person (“A”) if—
(a)A has control of the company, or
(b)A together with persons connected with A have control of the company.
(7)In relation to a company, any two or more persons acting together to secure or exercise control of the company are connected with—
(a)one another, and
(b)any person acting on the directions of any of them to secure or exercise control of the company.
575ASection 575: supplementary
(1)In section 575 and this section—
“company” includes any body corporate or unincorporated association, but does not include a partnership (and see also subsection (2)),
“control” is to be read in accordance with section 416 of ICTA (except where otherwise indicated),
“principal settlement” has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992,
“relative” means brother, sister, ancestor or lineal descendant,
“settlement” has the same meaning as in Chapter 5 of Part 5 of ITTOIA 2005 (see section 620 of that Act), and
“sub-fund settlement” has the meaning given by paragraph 1 of Schedule 4ZA to TCGA 1992.
(2)For the purposes of section 575—
(a)a unit trust scheme is treated as if it were a company, and
(b)the rights of the unit holders are treated as if they were shares in the company.
(3)For the purposes of section 575 “trustee”, in the case of a settlement in relation to which there would be no trustees apart from this subsection, means any person—
(a)in whom the property comprised in the settlement is for the time being vested, or
(b)in whom the management of that property is for the time being vested.
Section 466(4) of ITA 2007 does not apply for the purposes of this subsection.
(4)If any provision of section 575 provides that a person (“A”) is connected with another person (“B”), it also follows that B is connected with A.”