3(1)In the case of any employee a scheme is, in relation to the affected scheme, a related scheme for the purposes of this Schedule if—
(a)it was a registered scheme at any relevant time and the conditions set out in sub-paragraph (2) below are satisfied with respect to it; or
(b)notice that for the purposes of this Schedule it is to be treated as a related scheme in relation to the affected scheme is given to the employee by the scheme employer for the affected scheme.
(2)Those conditions are satisfied with respect to a scheme (“the relevant scheme”) if a person who is the scheme employer for the affected scheme was, at a relevant time—
(a)the scheme employer for the relevant scheme; or
(b)connected with a person who was, at that or another relevant time, the scheme employer for the relevant scheme.
(3)In this paragraph “relevant time” means any time on the day of the beginning for the employee of the relevant period or in the period of twelve months preceding that day.
(4)Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of this paragraph.
(5)Without prejudice to sub-paragraph (4) above, for the purposes of this paragraph—
(a)each of the members of a partnership shall be regarded as connected with the partnership and with any person (including another partnership) with whom the partnership is connected; and
(b)a partnership shall be regarded as connected with each of its members and with any person (including another partnership) with whom any of its members is connected.