CTM60150 - Close companies: tests: associates

CTA10/S448

When considering whether a company is close or not, and when considering whether a charge arises under CTA10/455 or 464A, you should establish who the participators in the company are. Once you have established who the participators are, you should then consider their associates and make any attribution of rights required.

The word associate has a general meaning, but in this context it has a specific meaning set out in CTA10/S448. A person바카라 사이트™s (P바카라 사이트™s) associates are:

  1. P바카라 사이트™s relatives;
  2. P바카라 사이트™s partners in any partnership;
  3. The trustees of a trust P is 바카라 사이트˜involved with바카라 사이트™ (see below); and
  4. The personal representatives of a deceased person (where P has an interest in the estate).

The terms above are broad categories which are set out in more detail below.

P may be a natural or legal person (usually an individual or a company), however not all the associates rules will apply to both. For example, only individuals will have relatives.

Relatives

Relative is defined quite narrowly in CTA10/S448(2) and only includes immediate relatives and lineal ascendants and descendants. Specifically, it includes:

  • P바카라 사이트™s husband, wife, or civil partner;
  • P바카라 사이트™s parents and remoter forebears;
  • P바카라 사이트™s children and remoter issue; and
  • P바카라 사이트™s siblings.

Separated spouses should be regarded as associated with each other but divorced persons should not. Other relatives in should be regarded as associated only if there is a blood relationship, for example, half-brothers are associated but stepbrothers are not.

Partners

Partner here refers to member of a partnership (for example a general partnership, Limited Partnership, Scottish Limited Partnership or Limited Liability Partnership) in which P is also a member.

It does not include any 바카라 사이트˜business partner바카라 사이트™ who P is accustomed to dealing with outside of the more formal partnerships outlined above.

Trustees

The trustees of a settlement will be the associates of P where:

  • P or a relative of P (whether living or dead) is the settlor of the settlement; or
  • P is the beneficiary of the settlement.

바카라 사이트˜Settlement바카라 사이트™ includes any disposition, trust, covenant, agreement or arrangement. The 바카라 사이트˜Settlor바카라 사이트™ is the person who made the settlement. This is generally the person who has provided, or promised to provide, funds for the purpose of the settlement. The settlor may have done this directly or indirectly, or they may have done this through 바카라 사이트˜reciprocal arrangements바카라 사이트™, i.e. where one person has made a settlement in exchange for another person making a settlement in return.

See CTM61000 onwards regarding close companies connected with a settlement.

Personal representatives

The situation for trusts and settlements is duplicated for will trusts Where P has an interest in the estate of someone who is deceased, the personal representatives of the deceased person are P바카라 사이트™s associates.