Part 23

Company distributions
Chapter 3

Matters which are not distributions

Supplementary provisions

Associated persons: trustees
1060
1
If shares in a company are held by the trustees of a settlement then, in relation to the company—
a
the trustees are associates of—
i
any person who (directly or indirectly) provided property to the trustees or has made a reciprocal arrangement for another to do so,
ii
any person who is, by virtue of section 1059(2) or (3), an associate of a person within sub-paragraph (i), and
iii
any person who is, or may become, beneficially entitled to a significant interest in the shares, and
b
any such person is an associate of the trustees.
2
Subsection (1) does not apply to shares held on trusts which relate exclusively to a registered pension scheme.
3
Subsection (1) does not apply to shares held on trusts which—
a
are exclusively for the benefit of—
i
the employees, or the employees and directors, of the company referred to in subsection (1) (or of companies in a group to which that company belongs), or
ii
their dependants, and
b
are not wholly or mainly for the benefit of directors or their relatives.
4
For the purposes of subsection (1) a person’s interest is significant if its value is greater than 5% of the value of all the settled property, excluding any property in which the person is not and cannot become beneficially entitled to an interest.
5
In subsection (3) “group” means a company which has one or more 51% subsidiaries, together with those subsidiaries.