Paragraph 7 Sums arising to connected persons other than companiesF1

(1)

This paragraph applies in relation to an individual (“A”) if—

(a)

a sum arises to a person (“B”) who is connected with A,

(b)

B is not a company, and

(c)

the sum does not arise to A apart from this paragraph.

(2)

The sum referred to in sub-paragraph (1)(a) arises to A for the purposes of this Schedule and this group of sections.

(3)

Where a sum arises to A by virtue of this paragraph, it arises to A at the time the sum referred to in sub-paragraph (1)(a) arises to B.

(4)

Section 993 of ITA 2007 (meaning of “connected”) applies for the purposes of this paragraph but as if—

(a)

subsection (4) of that section were omitted, and

(b)

partners in a partnership in which A is also a partner were not “associates” of A for the purposes of sections 450 and 451 of CTA 2010 (“control”).

Annotations

F1: Sch. A1 inserted (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 1