Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 12

Meaning of "associate"

Paragraph 12 of Schedule 4 defines who counts as an "associate" of an individual for the purposes of the "no material interest" requirement in share incentive plans.

• An associate includes any relative (spouse or civil partner, parent, child, remoter ancestor or descendant, or sibling) or business partner of the individual.
• Trustees of any settlement where the individual, or any of their relatives (living or dead), is or was a settlor are also associates.
• Where the individual has an interest in shares or obligations of the relevant company that are held in trust or form part of a deceased person's estate, the trustees of that trust or the personal representatives of the deceased are associates.
• The rule about interests held in trust or in a deceased's estate must be read alongside the special provisions for employee benefit trusts and discretionary trusts in paragraphs 13 and 14.