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HMRC internal manual

Capital Gains Manual

CG14580 - Connected persons

TCGA92/S286

TCGA92/S286 provides a definition of the term 'connected persons'. They are certain:

  • relatives
  • trustees
  • partners
  • companies


TCGA92/S286 (2)

A person is connected with an individual if that person is:

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

For the purpose of the connection, a relative is defined as:

  • brother or sister (or sibling)
  • ancestor or lineal descendant (grandparent, parents, children, grandchildren)

It does not cover all family relationships, in particular, the following relations are excluded:

  • aunts and uncles
  • nieces and nephews

The widows or widowers, or surviving civil partners, of deceased persons, or relatives of a deceased spouse or of a deceased civil partner are excluded unless connection can be established by a route not involving the deceased.

A dissolution of a civil partnership or a divorce can similarly lead to persons in addition to the former civil partner or spouse ceasing to be connected with the individual.