RPSM12301290 - Scheme Administrator Pages: Information Requirements and Administration: Information the scheme administrator is required to provide to HMRC: The Event Report: Meaning of 'connected with'

Meaning of 'connected with'

'Connected with' has the same meaning as in section 839 Income and Corporation Taxes Act 1988 (ICTA 1988).

Any provision in section 839 ICTA 1988 that one person is connected with another is taken to mean that they are connected with one another.

A person

A person is connected with an individual if that person is

• the spouse or civil partner of the individual, or
• a relative of the individual, or
• a relative of the individual's spouse or civil partner, or
• the spouse or civil partner of a relative of the individual, or
• the spouse or civil partner of a relative of the individual's spouse or civil partner.

Trustees

A person in his capacity as trustee of a settlement is connected with

• any individual who, in relation to the settlement, is a settlor
• any person who is connected with such an individual (see above)
• any body corporate which is connected with that settlement (that is, it is either a close company (or only not a close company because it is not resident in the United Kingdom) or it is controlled (within the meaning of section 840 ICTA 1988) by such a company).

For the meaning of 'settlement' and 'settlor' please see section 660G(1) and (2) ICTA 1988.

Companies

A company is connected with another company 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
• a group of two 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.

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.

Any two 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.

Meaning of 'company'

'Company' includes any body corporate or unincorporated association, but does not include a partnership, and this section shall apply in relation to any unit trust scheme as if the scheme were a company and as if the rights of the unit holders were shares in the company.

Meaning of 'control'

For the meaning of 'control', please see section 416 of- ICTA 1988.

Meaning of 'relative'

'Relative' means brother, sister, ancestor (parent, grandparent, great-grandparent and so on) or lineal descendant (child, grandchild, great-grandchild and so on).