Income Tax (Earnings and Pensions) Act 2003 section 421C

Associated persons

Section 421C defines who counts as an "associated person" in relation to employment-related securities, for the purposes of the tax charges and rules in Chapters 2 to 4 of the Act.

• Associated persons include the person who acquired the securities, the employee (if different), and any relevant linked person.
• A relevant linked person is someone who is or has been connected with, or a member of the same household as, either the acquirer or the employee.
• A company that would otherwise be a relevant linked person is excluded if it is the employer, the seller of the securities, the party that made the securities available, or the issuer of the securities.
• The definition matters because various tax charges and restrictions under Chapters 2 to 4 apply not only to the employee but also to associated persons holding or dealing with the securities.