Part 8Intangible fixed assets
Chapter 12Related parties
Connected persons
843Who are connected persons
1
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.
2
A person in the capacity of a 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, and
c
any body corporate that is connected with the settlement.
3
For the purposes of subsection (2) a body corporate is connected with a settlement if—
a
it is a close company (or not a close company only because it is not UK resident) and the participators include the trustees of the settlement, or
b
it is controlled by a company within paragraph (a).
4
A person is connected with a company if they are related parties because of section 835(2) or (3).
5
For the purposes of subsection (4) and for the purposes of section 835 as it applies for the purposes of subsection (4)—
a
“company” includes any body corporate or unincorporated association, but does not include a firm, and
b
a unit trust scheme is treated as if it were a company and as if the rights of the unit holders were shares in the company.