Clause 25

a reference to a person includes a partnership; and

a person (X) is treated as a related party of another person (Y) that is a partnership if X is related to Y in such manner as may be prescribed by rules made under section 7.(4) In a case where a related party is a partnership, a reference to the person in subsections (1)(c) and (1A) is to a partner of the partnership.Transactions involving trusts(5) In subsections (1)(a) and (b), (1B), (1C) and (2) —

a reference to a person includes the trustee of a trust (excluding a registered business trust) when acting in that capacity; and

a person (X1) is treated as a related party of another person (Y1) that is a trustee of a trust (excluding a registered business trust) if X1 is related to Y1 in such manner as may be prescribed by rules made under section 7.(6) In a case where a related party is the trustee of a trust (excluding a registered business trust), a reference to the person in subsections (1)(c) and (1A) is to the person in whose hands the income, deduction or loss concerned is taxable or deductible under this Act.(7) In subsections (1)(a) and (2) —

a reference to a person includes a registered business trust; and

a person (X2) is treated as a related party of another person (Y2) that is a registered business trust, if X2 is related to Y2 in such manner as may be prescribed by rules made under section 7.(8) In a case where a related party is a registered business trust (Y2) —

a reference in subsections (1)(b), (1B) and (1C) to commercial or financial relations Y2 has with another party, is to commercial or financial relations entered into by its trustee‑manager (Z) (for or on behalf of Y2) with the other party, and a reference in those provisions to conditions made or imposed in those commercial or financial relations is to conditions made or imposed between Z (for or on behalf of Y2) and the other party; (b)a reference to the person in subsections (1)(c) and (1A) is to the registered business trust; and

a reference to the carrying on of business by a person in subsection (2) that is Y2 is to the trustee‑manager carrying on business for or on behalf of Y2.(9) This section does not apply where the related parties are parties to a trust mentioned in subsection (10), and the transaction in question is for the carrying out of the trust.(10) Subsection (9) applies to a trust of which —

every settlor is an individual; and

every beneficiary is an individual or a charitable institution, trust or body of persons established for a philanthropic purpose only,and that is not one of the following:

a real estate investment trust within the meaning of section 43(10);

a unit trust within the meaning of section 10A;

a business trust within the meaning of section 2 of the Business Trusts Act 2004; (f)any other trust that is established for the purpose of carrying out a business or commercial activity.(11) In this section —“philanthropic purpose” means any purpose mentioned in paragraphs (a) to (k) of the definition of “philanthropic purpose trust” in section 13L(3);“registered business trust” has the meaning given by section 2 of the Business Trusts Act 2004.”.