CG67836 - Reliefs: employee-ownership trusts: conditions: the 'all-employee benefit requirement': 'authorised transfer'

TCGA92/S236J(7)

An 바카라 사이트˜authorised transfer바카라 사이트™ is, subject to the conditions below, a transfer of property consisting of or including any ordinary share capital of a company. That company is referred to as the 바카라 사이트˜transferred company바카라 사이트™.

The conditions are that

  • the 바카라 사이트˜transferred company바카라 사이트™ meets the 바카라 사이트˜trading requirement바카라 사이트™, and
  • the transfer is made to the trustees of a settlement which
    • meets the 바카라 사이트˜controlling interest requirement바카라 사이트™ with respect to the 바카라 사이트˜transferred company바카라 사이트™ immediately after the transfer, and
    • meets the 바카라 사이트˜all-employee benefit requirement바카라 사이트™ with respect to the 바카라 사이트˜transferred company바카라 사이트™.

For these purposes the trustees of a settlement must actually meet the 바카라 사이트˜all-employee benefit requirement바카라 사이트™. If they do not, but can be treated as meeting it, see CG67844, the transfer is not an 바카라 사이트˜authorised transfer바카라 사이트™.

Also, in applying this guidance, references to C in CG67838, CG67839, CG67850 and CG67876 should be read as references to the 바카라 사이트˜transferred company바카라 사이트™.

The rules covered in CG67835 mean that in general trustees may not transfer settled property to another trust without affecting the availability of relief. However, in accordance with the paragraphs above, the outcome can be different where the trustees transfer settled property and the trust receiving it becomes an EOT as a result of the transfer. Subject to the other requirements being met, the transferring trustees may claim relief under TCGA92/S236H on their gains in such cases.

Example 7

The trust deed of the Furud Widgets Limited EOT permits the trustees, at their absolute discretion, to transfer the trust property to the trustees of another settlement. The Furud Widgets Limited EOT therefore does not actually meet the 바카라 사이트˜all-employee benefit requirement바카라 사이트™, as it is able to make a transfer of funds that is not an 바카라 사이트˜authorised transfer바카라 사이트™ to another settlement.

Example 8

The trust deed of the Gienah Widgets Limited EOT permits the trustees to transfer trust property to the trustees of another settlement only if the trusts of that other settlement allow it to meet the 바카라 사이트˜all-employee benefit requirement바카라 사이트™ as stated at TCGA92/S236J(1). Subject to meeting the other conditions listed in CG67835, the EOT can actually meet the 바카라 사이트˜all-employee benefit requirement바카라 사이트™.