Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 31

Meaning of "associate"

Paragraph 31 of Schedule 5 defines who counts as an "associate" of an individual for the purposes of the "no material interest" requirement in enterprise management incentive (EMI) share option schemes.

• An associate includes any relative (spouse, civil partner, parent, child or remoter direct-line relation) or business partner of the individual.
• Trustees of any settlement where the individual or any of the individual's relatives (living or dead) is or was the settlor are also associates.
• Where the individual has an interest in shares or obligations of the relevant company held in a trust or forming part of a deceased person's estate, the trustees or personal representatives are also associates.
• Special rules in paragraphs 32 and 33 modify the trust-related associate rules for employee benefit trusts and discretionary trusts.