Taxation of Chargeable Gains Act 1992 section 286

Connected persons: interpretation

Section 286 defines who counts as a "connected person" for capital gains tax purposes, covering relationships between individuals, trustees, partners, and companies.

• Individuals are connected with their spouse or civil partner, relatives (siblings, ancestors and lineal descendants), and the spouses or civil partners of those relatives — but not with uncles, aunts, nephews or nieces
• Trustees of a settlement are connected with the settlor, anyone connected with the settlor, any close company in which the trustees are participators, and the trustees of related sub-fund settlements
• Partners are connected with each other and with the spouse, civil partner or relative of any individual partner, unless a transaction involves partnership assets dealt with under genuine commercial arrangements
• Companies are connected with another company or person where there is common control, whether exercised by the same person, by connected persons, or by groups that overlap through connected persons — and two or more persons acting together to secure or exercise control of a company are treated as connected with one another