Income Tax Act 2007

993 Meaning of “connected” persons U.K.

(1) This section has effect for the purposes of the provisions of the Income Tax Acts which apply this section.

(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 995) by a company within paragraph (c) or (d),

(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.

Modifications etc. (not altering text)

C1 S. 993 applied by 2004 c. 12, s. 213O(8) (as inserted (8.4.2010 with effect in accordance with Sch. 2 para. 5 of the amending Act) by Finance Act 2010 (c. 13), Sch. 2 para. 2)

C2 S. 993 applied by 2004 c. 12, s. 213D(4) (as inserted (8.4.2010 with effect in accordance with Sch. 2 para. 5 of the amending Act) by Finance Act 2010 (c. 13), Sch. 2 para. 2)

C3 S. 993 applied by S.I. 2006/964, reg. 69J(10)(a) (as inserted (6.4.2008) by The Authorised Investment Funds (Tax) (Amendment) Regulations 2008 (S.I. 2008/705), regs. 1, 5)

C4 S. 993 applied (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 34(7)

C5 S. 993 applied by SI 2006/964 reg. 14C(10)(a) (as inserted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Authorised Investment Funds (Tax) (Amendment No. 3) Regulations 2008 (S.I. 2008/3159), regs. 1(1), 11)

C6 S. 993 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 35 para. 2(6)

C7 S. 993 applied (with effect in accordance with art. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 76(3)(a), 82(3)(a), 119, 122

C8 S. 993 applied (8.4.2010) by Finance Act 2010 (c. 13), Sch. 1 para. 49(3)

C9 S. 993 applied (1.1.2012) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Investment Trust (Approved Company) (Tax) Regulations 2011 (S.I. 2011/2999), regs. 1(1), 34(3)(a)

C10 S. 993 applied (with modifications) (19.12.2012 for specified purposes, 6.4.2013 in so far as not already in force) by Small Charitable Donations Act 2012 (c. 23), ss. 5(3), 21

C11 S. 993 modified (6.4.2014) by National Insurance Contributions Act 2014 (c. 7), s. 8, Sch. 1 para. 8(2)

C12 S. 993 applied (with effect in accordance with reg. 1(2) of the amending S.I.) by The Investment Transactions (Tax) Regulations 2014 (S.I. 2014/685), regs. 1(1), 3(5)(a)

C13 S. 993 applied by 2004 c. 12, s. 228ZA (as inserted (with effect in accordance with Sch. 4 para. 10(2) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 4 para. 10(1))

C14 S. 993 applied (with modifications) by 1992 c. 12, s. 103KG(15) (as inserted (with effect in accordance with s. 43(2)-(4) of the amending Act) by Finance (No. 2) Act 2015 (c. 33), s. 43(1))

C15 S. 993 applied by 2003 c. 1, s. 226E(10) (as inserted (with effect in accordance with Sch. 2 para. 4(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 2 para. 1)

C16 S. 993 applied by 2003 c. 1, s. 306B(10) (as inserted (with effect in accordance with Sch. 2 para. 4(1) of the amending Act) by Finance Act 2016 (c. 24), Sch. 2 para. 2)

C17 S. 993 applied (with modifications) (15.9.2016) by Finance Act 2016 (c. 24), s. 118(4) (with s. 117)

C18 S. 993 modified (15.9.2016) by Finance Act 2016 (c. 24), s. 118(2) (with s. 117)

C19 S. 993 modified (with effect in accordance with s. 35(4) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 12 para. 2(7)(c)

C20 S. 993 applied (with modifications) by 2005 c. 5, s. 23D(4) (as inserted (with effect in accordance with s. 35(4) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 35(2))

C21 S. 993 modified (with effect in accordance with Sch. 4 para. 12 of the amending Act) by Finance Act 2019 (c. 1), Sch. 4 para. 4(4)(a)