CITM9010 - Definitions: Meaning of “associate”

CTA2010/Part 7/Chapter 6/S268; ITA/s381

For the purposes of the CITR scheme associate means in relation to any person:

  • a relative, that is to say,
  • husband, wife or civil partner
  • parent or remoter forbear
  • child or remoter issue
  • a partner, that is, anyone with whom the individual carries on a business as described in the Partnership Act, 1890 (see PM131200)
  • the trustee or trustees of any settlement in relation to which the person (or any relative of his - living or dead - as defined above) is or was a settlor
  • where the person is interested in any shares or obligations of the company which are subject to any trust or are part of the estate of a deceased person, the trustees of that trust or the personal representatives of the deceased. Where the person is a company, any other company interested in those shares is also an associate.

“Settlement” includes any disposition, trust, covenant, agreement, arrangement or transfer of assets, and “settlor” in relation to a settlement means any person by whom the settlement was made.

Separated spouses are regarded as associated with each other but divorced persons are not. Other relatives (as defined above) should be regarded as associated only if there is a blood relationship; for example, an illegitimate child is an associate but a stepchild is not.