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Nephew was an Ood that lived with Auntie and Uncle on an asteroid - actually an accretion to a sentient lifeform called House.
Biography
Nephew - like all there - was brought to House through a rift in spacetime. When he arrived, he was broken, but House fixed him. There he lived with Auntie, Uncle and Idris. He tended to Auntie's and Uncle's worries in the manner of an enslaved Ood. However, unlike Auntie and Uncle, he did not possess any obvious signs of being "repaired" by House. The Doctor attempted to fix his translation sphere, but it didn't last very long, and only picked up Time Lord hypercube transmissions, not the Ood's thoughts.
Nephew also has the ability to drain people's minds and souls. This may have been a natural ability of Oodkind or something House gave him.
Soon after the Doctor, Amy and Rory arrived on the asteroid, Nephew became possessed by House and chased Amy and Rory through the TARDIS corridors. He eventually met his demise in the control room used by the Ninth and Tenth Doctors when the Doctor and Idris' makeshift TARDIS materialised in the space he was standing in, rending him apart at an atomic level. (DW: The Doctor's Wife)
As he had a translation sphere in the place of his hindbrain, Nephew was presumably one of the many Ood slaves of the Second Great and Bountiful Human Empire before his arrival on House. This would make the story set before the 42nd century, unless Nephew has been there for a several thousand years.