What type of relationship involves people like nieces and nephews in regards to connected persons?

The correct answer is extended family because this classification encompasses relatives beyond the immediate family, which typically includes parents, siblings, and children. Extended family includes relatives such as aunts, uncles, cousins, nieces, and nephews, reflecting the broader familial connections in tax legislation concerning connected persons.

In the context of connected persons for tax purposes, recognizing the extended family is crucial as it determines the application of certain tax rules and provisions. This can impact matters such as the calculation of allowable reliefs, exemptions, and the identification of related party transactions.

Immediate family would typically not include nieces and nephews, as it is a narrower definition. Non-connected family is not a standard term in connected persons legislation, making it irrelevant here. Business-related family focuses on relationships within the context of a business or partnership, which does not capture the full scope of familial relationships relevant to this question.