Corporation Tax Act 2009 section 842

Introduction

Section 842 introduces the rules for determining whether one person is "connected" with another for the purposes of the related party rules in this Chapter.

• Section 843 sets out the detailed rules for when two persons are treated as connected with each other.
• The connection is always reciprocal — if person A is connected with person B, then B is automatically connected with A.
• "Relative" for these purposes means a brother, sister, ancestor, or lineal descendant (such as a child or grandchild).
• "Settlement" and "settlor" take their meanings from the income tax legislation (Chapter 5 of Part 5 of ITTOIA 2005).