Income Tax (Earnings and Pensions) Act 2003 section 718

Connected persons

Section 718 establishes how to determine whether persons are "connected" for the purposes of the Income Tax (Earnings and Pensions) Act 2003, by applying the definition set out in section 993 of the Income Tax Act 2007.

• The concept of "connected persons" is used throughout the ITEPA 2003 wherever relationships between individuals or entities are relevant to tax treatment.
• Rather than defining connected persons separately, this section adopts the standard definition found in section 993 of the Income Tax Act 2007.
• Connected persons typically include relatives, business partners, companies under common control, and trustees of settlements where the settlor or their relatives are involved.
• This single cross-referencing approach ensures consistency across income tax legislation when determining whether parties are connected.