Loan relationships: connected parties: late interest: participation: associates
Connection through participation: associate
The definition follows that used in CTA10/S448. The following are associates of the participator
- business partner
- trustee(s) of a settlement by the participator or by a relative, living or dead, of the participator.
For this purpose, relative
- includes spouse (unless divorced), parent or grandparent (or remoter ancestor), child or grandchild (or remoter descendant) and brother or sister
- excludes in-laws, aunt or uncle, niece or nephew, cousin, stepsister or stepbrother, step-parents and common law spouse.
Where the participator has an interest in shares subject to a trust or part of the estate of a deceased person, the term ‘associate’ also includes
- the trustee(s) of the settlement or the personal representative(s) of the deceased
- (if the participator is a company) any other company with an interest in those shares.
Kit Gerrard lends £500,000 to PH Ltd, a close company. Kit owns no shares or other rights in the company. Kit’s brother, Guy Gerrard, owns 500 shares in PH Ltd.
Guy Gerrard is a participator in PH Ltd. Kit is Guy’s brother, and so is an associate of a participator and connected under CTA09/S375.