Section 1060 — Corporation Tax Act 2010: Associated persons: trustees

Associated persons: trustees 1060 1 If shares in a company are held by the trustees of a settlement then, in relation to the company—

a the trustees are 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 section 1059(2) or (3), an associate of a person within sub-paragraph (i), and iii any person who is, or may become, beneficially entitled to a significant interest in the shares, and b any such person is an associate of the trustees.

2 Subsection (1) does not apply to shares held on trusts which relate exclusively to a registered pension scheme.

3 Subsection (1) does not apply to shares held on trusts which—

a are exclusively for the benefit of—

i the employees, or the employees and directors, of the company referred to in subsection (1) (or of companies in a group to which that company belongs), or ii their dependants, and b are not wholly or mainly for the benefit of directors or their relatives.

4 For the purposes of subsection (1) a person's interest is significant if its value is greater than 5% of the value of all the settled property, excluding any property in which the person is not and cannot become beneficially entitled to an interest.

5 In subsection (3) “ group ” means a company which has one or more 51% subsidiaries, together with those subsidiaries.