Commentary

I3.142 Commercial transactions for IHT―connected persons

IHT, trusts and estates

I3.142 Commercial transactions for IHT―connected persons

I3.142 Commercial transactions for IHT―connected persons

The commercial transactions exclusion1 outlined at I3.141 makes reference to 'connected persons' and understanding this definition is key to the exclusion.

The question of whether persons are connected is determined by reference to the definitions in the CGT legislation2, but the meanings of 'relative' and 'settlement' are extended for the purposes of IHT3. If one person is connected with another, the other is connected with him4.

A person is connected with an individual if that person is the individual's husband or wife, or is a relative, or the husband or wife of a relative, of the individual or of the individual's husband or wife5. For IHT purposes only the word 'relative' is

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