Section 163 Meaning of “connected” in sections 159 and 161F2 C1

(1)

Subsections (2) and (3) apply for the purposes of F1sections 159 and 161 and this section.

(2)

Two persons are connected with each other if one of them is an individual and the other is—

(a)

the individual's spouse or civil partner,

(b)

a relative of the individual,

(c)

a relative of the individual's spouse or civil partner, or

(d)

the spouse, or civil partner, of a person within paragraph (b) or (c).

(3)

Two persons are connected with each other if one of them is a trustee of a settlement and the other is—

(a)

a person who in relation to that settlement is a settlor, or

(b)

a person who is connected with a person within paragraph (a).

(4)

In this section—

“relative” means brother, sister, ancestor or lineal descendant, and
“settlement” and “settlor” have the same meaning as in section 620 of ITTOIA 2005.

Annotations

F1: Words in s. 163(1) substituted (for chargeable periods commencing on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 6 paras. 13(4)(b), 32(1)
F2: Words in s. 163 heading substituted (for chargeable periods commencing on or after 1.1.2026) by Finance Act 2026 (c. 11), Sch. 6 paras. 13(4)(a), 32(1)

C1: Ss. 158-163 applied (with modifications) (with effect in accordance with s. 116(1) of the amending Act) by Finance Act 2015 (c. 11), s. 106(7)(b)

C1: Pt. 4 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)
C2: Pt. 4 excluded (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(2); S.I. 2011/2329, art. 3
C3: Pt. 4 excluded (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(2); S.I. 2011/2576, art. 5
C4: Pt. 4 excluded (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 129(11) (with s. 147, Sch. 17)