Corporation Tax Act 2010 section 1123

"Connected" persons: supplementary

Section 1123 provides the definitions and interpretive rules needed to apply the connected persons rules in section 1122.

• Key terms such as "company", "control", "relative", "settlement" and "trustee" are specifically defined for the purposes of the connected persons rules, with "company" broadly covering corporate and unincorporated associations but excluding partnerships.
• A unit trust scheme is treated as if it were a company, and the rights of unit holders are treated as if they were shares in that company, so that the connected persons rules can apply to unit trusts in the same way as to companies.
• Where a settlement has no formally appointed trustees, anyone in whom the settlement property or its management is vested is treated as a trustee for the purposes of the connected persons rules.
• The connected persons relationship is always reciprocal: if person A is connected with person B under section 1122, then person B is equally connected with person A.