Corporation Tax Act 2010 section 1060

Associated persons: trustees

Section 1060 sets out when trustees of a settlement who hold shares in a company are treated as associates of certain persons connected with the settlement, and vice versa, for corporation tax purposes.

• Where trustees hold shares in a company under a settlement, they are associates of anyone who provided property to the trust, associates of that provider, and anyone with a significant beneficial interest (over 5% of settled property value) in the shares — and those persons are associates of the trustees in return.
• These association rules do not apply where the shares are held on trusts relating exclusively to a registered pension scheme.
• The rules also do not apply where the trust exists exclusively for the benefit of the company's employees (or employees and directors) or their dependants, provided the trust is not wholly or mainly for the benefit of directors or their relatives.
• A "group" for this purpose means a parent company together with its 51% subsidiaries.