Income Tax (Trading and Other Income) Act 2005 section 179

Connected persons

Section 179 defines who counts as a "connected person" for the purposes of valuing trading stock when a trade ceases (sections 175 to 178).

• Two persons are connected if they fall within the general definition of connected persons in section 993 of ITA 2007, which covers relatives, business partners, and their associated trusts and companies.
• A person is connected with a firm (partnership) if that person has a right to a share of the firm's assets or income.
• A person is connected with a body corporate (company) if that person has control over it.
• Two firms, two bodies corporate, or a firm and a body corporate are connected if the same person has a right to a share of assets or income of both, or has control over both.