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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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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.

Relative means a brother, sister, ancestor or lineal descendant. The term ‘relative’ does not cover all family relationships. In particular, it does not include nephews, nieces, uncles and aunts.

The following diagram illustrates the provisions of TCGA92/S286 (2). All of the people in the diagram are connected with the individual. They are not all connected with each other.

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An individual is connected with:

  • Husband, wife or civil partner;
  • Relatives (= brother, sister, ancestor in lineal descendant) and spouses or civil partners of relatives;
  • Relatives of spouse or of civil partner and spouses or civil partners of those relatives.

All the persons in the diagram are connected with the individual.

Excluded are the widows or widowers, or surviving civil partners, of deceased persons, or relatives of a deceased spouse or of a deceased civil partner 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.