Section 286 | Connected persons: interpretation.
From legislation.gov.uk
(1)Any question whether a person is connected with another shall for the purposes of this Act be determined in accordance with the following subsections of this section (any provision that one person is connected with another being taken to mean that they are connected with one another).
(2)A person is connected with an individual if that person is the individual’s spouse or civil partner, or is a relative, or the spouse or civil partner of a relative, of the individual or of the individual’s spouse or civil partner.F1
(3)A person, in his capacity as trustee of a settlement, is connected with—F2F3
(a)any individual who in relation to the settlement is a settlor,F2
(b)any person who is connected with such an individual, ...F2F4
(c)any body corporate which is connected with that settlement,F2
(d)if the settlement is the principal settlement in relation to one or more sub-fund settlements, the trustees of the sub-fund settlements, andF2F5
(e)if the settlement is a sub-fund settlement in relation to a principal settlement, the trustees of any other sub-fund settlements in relation to the principal settlement.F2F5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3ZA)For the purpose of subsection (3) above—F2F6
(a)“settlement” has the same meaning as in section 620 of ITTOIA 2005, andF2F6
(b)“trustee”, in relation to a settlement in relation to which there would be no trustees apart from this paragraph, means any person in whom the settled property or its management is for the time being vested.F2F6
(3A)For the purpose of subsection (3) above a body corporate is connected with a settlement if—F2
(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; orF2
(b)it is controlled (within the meaning of section 1124 of CTA 2010) by a company falling within paragraph (a) above.F2F7
(4)Except in relation to acquisitions or disposals of partnership assets pursuant to bona fide commercial arrangements, a person is connected with any person with whom he is in partnership, and with the spouse or civil partner or a relative of any individual with whom he is in partnership.F8
(5)A company is connected with another company—
(a)if the same person has control of both, or a person has control of one and persons connected with him, or he and persons connected with him, have control of the other, or
(b)if a group of 2 or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected.
(6)A company is connected with another person, if that person has control of it or if that person and persons connected with him together have control of it.
(7)Any 2 or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.
(8)In this section “relative” means brother, sister, ancestor or lineal descendant.