The definition of a connected person for tax purposes can be complex and varies depending on the circumstances.<\/p>\n
A statutory definition of “connected persons” for tax purposes is set out in Section 839 of the Income and Corporation Taxes Act (ICTA) 1988.<\/p>\n
The general situation in Section 839(2) of ICTA 1988 states:<\/p>\n
"A person is connected with an individual if that person is the individual’s wife or husband, or is a relative, or the wife or husband of a relative, of the individual or of the individual’s wife or husband."<\/em><\/p>\n Section 839(8) of ICTA 1988 states that, in this context, "‘relative’ means brother, sister, ancestor or lineal descendant." Married partners are connected with each other.<\/p>\n The term 'relative' does not cover all family relationships. In particular it does not include nephews, nieces, uncles and aunts.<\/p>\n However, the definition of connected persons is extended for Inheritance Tax to include the individual’s uncle\/aunt, nephew\/nieces and their spouse, spouse’s uncle\/aunt and spouse’s nephew and niece.<\/p>\n There are further categories of connected persons in respect of trustees, acquisitions and disposals of partnership assets and in relation to companies.<\/p>\n The definition of a connected person for tax<\/p>\n","protected":false},"author":1,"featured_media":1992,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\n