Without special provisions, people with a common interest could enter into artificial transactions or manipulate the terms of transactions so as to avoid tax. The legislation, therefore, regulates dealings between ‘connected persons’ and, in some cases, deems the parties to specified transactions to include persons connected with them. The main provisions affecting connected persons are set out below, together with a reference to the paragraphs in the volumes of the Tax Reporter where commentary on them can be found:

Statutory Provision

Description of provision


Transactions between connected persons

TCGA 1992, s. 18(1), (2)

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