Section 163 | Meaning of “connected” in sections 159 and 161

(1)Subsections (2) and (3) apply for the purposes of sections 159 and 161 and this section.^F1

(2)Two persons are connected with each other if one of them is an individual and the other is—

(a)the individual's spouse or civil partner,

(b)a relative of the individual,

(c)a relative of the individual's spouse or civil partner, or

(d)the spouse, or civil partner, of a person within paragraph (b) or (c).

(3)Two persons are connected with each other if one of them is a trustee of a settlement and the other is—

(a)a person who in relation to that settlement is a settlor, or

(b)a person who is connected with a person within paragraph (a).

(4)In this section—

“relative” means brother, sister, ancestor or lineal descendant, and

“settlement” and “settlor” have the same meaning as in section 620 of ITTOIA 2005.