Income Tax (Earnings and Pensions) Act 2003 section 60

Meaning of "associate"

Section 60 defines the term "associate" for the purposes of the rules on beneficial loans and related employment income charges.

• An associate of an individual follows the definition in section 448 of the Corporation Tax Act 2010 (the close companies definition), with certain modifications
• An associate of a company is any person connected with that company, and an associate of a partnership is any associate of any member of the partnership
• Where an individual is a beneficiary of an employee benefit trust, the trustees are generally not treated as associates of that individual solely because of that beneficial interest
• However, the trustees will be treated as associates if the individual (alone or with associates) has at any time on or after 14 March 1989 beneficially owned or controlled more than 5% of the company's ordinary share capital