Connected persons
101(1)This paragraph explains what is meant in this Part when a person is referred to as being connected with another person.
Any provision that one person is connected with another means that they are connected with one another.
(2)A person is connected with an individual if that person is the individual’s wife or husband, or is a relative, or the wife or husband of a relative, of the individual or of the individual’s wife or husband.
For the purposes of this sub-paragraph “relative” means brother, sister, ancestor or lineal descendant.
(3)A person in his capacity as trustee of a settlement is connected with—
(a)any individual who in relation to the settlement is a settlor,
(b)any person who is connected with such an individual, and
(c)any body corporate that is connected with that settlement.
For the purposes of this sub-paragraph “settlement” and “settlor” have the same meaning as in Chapter 1A of Part 15 of the Taxes Act 1988 (settlements: liability of settlor) (see section 660G(1) and (2) of that Act).
(4)For the purposes of sub-paragraph (3) above a body corporate is connected with a settlement if—
(a)it is a close company (or only not a close company because it is not resident in the United Kingdom) and the participators include the trustees of the settlement, or
(b)it is controlled by a company falling within paragraph (a) above.
(5)A person is connected with a company if they are related parties within Case One or Case Two in paragraph 95(1) above.
(6)For the purposes of sub-paragraph (5) above and for the purposes of paragraph 95 as it applies for the purposes of that sub-paragraph—
(a)“company” includes any body corporate or unincorporated association, but does not include a partnership; and
(b)a unit trust scheme shall be treated as if it were a company and as if the rights of the unit holders were shares in the company.