Allow me to present the large middle finger of evidence...
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No idea where you pulled your nonsense from but any blood relations is classed as incest.
No. The law on incest only prohibits intercourse where the woman is the mother, daughter, granddaughter or sister of the man.
But for sexual activities between uncles/aunts (adults) and nieces/nephews (under 18), it is a criminal offense, even if the younger part is above the age of consent.
Incest is not classified by blood relation, but by hereditary lines.
In the UK, it is not allowed for uncles/aunts and nieces/nephews to marry.
In your linked article, the uncle and niece had children together. That may be legal or illegal, or the niece was below 18 when they had the first child.
" Amendments Nos. 133 and 154 would have the effect of including the relationships between uncles and aunts with their nephews and nieces within the scope of the sex with an adult relative offences in clauses 65 and 66. They would prohibit�in the same way that clauses 65 and 66 prohibit mother, father, sister, brother, half-sister and half-brother relationships�a relationship with not only the child in that relationship of aunt, uncle, nephew or niece, but a relationship with an adult. It is currently prohibited for an aunt or uncle to have a sexual relationship with their nephew or niece up until the age of 18;
thereafter, when it becomes an adult offence, it is not prohibited. "
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Wouldn't be surprised though if the UK, as the only country in the western world, made their own definitions for the term incest.
Regardless of the legality by UK law, sex between an uncle and niece has never been, and will never be, incest.