VCM25200 - EIS: income tax relief: associates: of individuals

ICTA/S417 (3) & (4); ICTA/S312 (1); ITA/S253

For the purpose of the relief an associate of an individual is:

a) a relative, that is to say, their:

i) spouse or civil partner,

ii) parent or remoter forbear,

iii) child or remoter issue,

but not, as in Section 417 (4), their brother or sister.

b) a partner - that is, anyone with whom the individual carries on a business as described in the Partnership Act, 1890 (see BIM72001),

c) the trustee or trustees of any settlement in relation to which the individual claiming relief (or any relative of his - living or dead - within (a) above) is or was a settlor (but see the first paragraph of VCM25220),

d) where the individual is interested in (see VCM25210) any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person, the trustees of that trust or the personal representatives of the deceased.

As regards (a) (i) above, separated spouses or civil partners are regarded as associated with each other but divorced persons are not. Other relatives in (a) (ii) and (iii) should be regarded as associated only if there is a blood relationship; for example, an illegitimate child is an associate but a step-child is not.