Disposals to Connected Parties
If there is a gain, it is simply aggregated with the other gains in the year.
For the purposes of capital gains tax, an individual is connected with all of the following:
- his spouse or civil partner
- his ‘relatives’ (defined as ancestors such as one’s parents or grandparents, lineal descendants such as children or grandchildren, and brothers or sisters)
- the spouses or civil partners of his ‘relatives’
- the ‘relatives’ of his spouse or civil partners and the spouses or civil partners of these relatives
- his business partners, their spouses / civil partners and their ‘relatives’
A taxpayer is not connected with his uncles, cousins, nieces or nephews, as they are not ‘relatives’.