Corporation Tax Act 2010 section 1061

Associated persons: personal representatives

Section 1061 defines when personal representatives of a deceased person and potential beneficiaries of shares in the deceased's estate are treated as associates of each other for corporation tax purposes.

• Where shares in a company form part of a deceased person's estate, the personal representatives and any person who is or may become entitled to a significant interest in those shares are treated as associates of each other.
• A "significant interest" means one whose value exceeds 5% of the total value of all property in the estate, disregarding any property in which the person has no entitlement and cannot acquire one.
• The association works in both directions: personal representatives are associates of the beneficiary, and the beneficiary is an associate of the personal representatives.
• This rule supplements the general definition of "associate" and ensures that control and connection tests elsewhere in the Act properly capture relationships arising through deceased estates.