Finance Act, 1991
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Associated persons. |
71.—(1) Any question whether a person is an associate of another in relation to a company shall be determined for the purposes of sections 61 to 68 and section 72 in accordance with the following provisions, that is to say: | |
(a) a husband and wife living together shall be associates of one another, a person under the age of 18 shall be an associate of his parents, and his parents are his associates; | ||
(b) a person who has control of a company shall be an associate of the company and the company shall be his associate; | ||
(c) where a person who has control of one company has control of another company, the second company shall be an associate of the first; | ||
(d) where shares in a company are held by trustees (other than bare trustees) then in relation to that company, but subject to subsection (2), the trustees shall be associates of— | ||
(i) any person who directly or indirectly provided property to the trustees or has made a reciprocal arrangement for another to do so, | ||
(ii) any person who is, by virtue of paragraph (a), an associate of a person within subparagraph (i), and | ||
(iii) any person who is or may become beneficially entitled to a material interest in the shares, | ||
and any such person shall be an associate of the trustees; | ||
(e) where shares in a company are comprised in the estate of a deceased person, then in relation to that company the deceased's personal representatives shall be associates of any person who is or may become beneficially entitled to a material interest in the shares, and any such person shall be an associate of the personal representatives; | ||
(f) where one person is accustomed to act on the directions of another in relation to the affairs of a company, then in relation to that company, the two persons shall be associates of one another. | ||
(2) Subsection (1) (d) shall not apply to shares held on trusts which— | ||
(a) relate exclusively to an exempt approved scheme as defined in Chapter II of Part I of the Finance Act, 1972 , or | ||
(b) are exclusively for the benefit of the employees, or the employees and directors, of the company referred to in the said subsection (1) (d) or of companies in a group to which that company belongs, or their dependants, and are not wholly or mainly for the benefit of directors or their relatives, | ||
and for the purposes of this subsection “group” means a company which has one or more 51 per cent. subsidiaries, together with those subsidiaries. | ||
(3) For the purposes of paragraphs (d) and (e) of subsection (1), a person's interest is a material interest if its value exceeds 5 per cent. of the value of all the property held on the trusts or, as the case may be, comprised in the estate concerned, excluding any property in which he is not and cannot become beneficially entitled to an interest. |