CG67865 - Reliefs: employee-ownership trusts: relief for deemed disposals under TCGA92/S71

Throughout this manual, all legislative references are to (바카라 사이트淭CGA92바카라 사이트�) unless otherwise stated.听

S236Q TCGA92 and Sch37, Para 3(e) Finance Act 2014听

This provides a similar relief to S236H, see听CG67801, in circumstances where there is a deemed disposal by trustees because of the effect of S71. Similar conditions for the relief apply, and there are similar rules for preventing claims, withdrawing relief or crystallising gains in trustees바카라 사이트� hands when a disqualifying event occurs.听

Relief is available where there is a deemed disposal by reason of the trustees of a settlement, (바카라 사이트榯he acquiring trustees바카라 사이트�), becoming absolutely entitled to settled property as against the trustees of that settled property (바카라 사이트榯he transferring trustees바카라 사이트�) and听

  • that settled property is the ordinary share capital of a company,听
  • the relevant 바카라 사이트榬elief requirements바카라 사이트� are met, and听
  • the 바카라 사이트榯ransferring trustees바카라 사이트� make a claim.听

The relevant 바카라 사이트榬elief requirements바카라 사이트� are the first to fifth and the seventh requirements set out in听CG67820.听

Where a disposal qualifies for relief, this is given by the relevant disposal and acquisition being treated for the purposes of TCGA92 as being made for consideration that gives rise to neither a gain nor a loss on the disposal.听 The 바카라 사이트榤arket value바카라 사이트� rule in S17(1) does not apply to such disposals.听

For the purposes of deciding the consequences of a 바카라 사이트榙isqualifying event바카라 사이트� the 바카라 사이트榓cquiring trustees바카라 사이트� are treated as acquiring the property from the 바카라 사이트榯ransferring trustees바카라 사이트� at the time of the deemed disposal, in circumstances where S236H applies.听 Where the 바카라 사이트榙isqualifying event바카라 사이트� occurs after the end of fourth tax year following that in which the deemed disposal arises, the consequences parallel those described in听CG67861. For the consequences in other circumstances, apart from those where the transitional rules apply, see听CG67866. 听听

In applying the 바카라 사이트榬elief requirements바카라 사이트� and the rules covered in听CG67830听to听CG67861听to deemed disposals under S71, references to 바카라 사이트榮ettlement바카라 사이트� should be read as references to the settlement whose trustees are the 바카라 사이트榓cquiring trustees바카라 사이트�.听 Likewise, references to C should be read as references to the company mentioned in the first bullet point above.听

Example 30听

On 12 June 2014 the trustees of the Dheneb Widgets Limited EOT become absolutely entitled as against the trustees of the Dheneb Widgets Limited EBT to 80% of the ordinary share capital of Dheneb Widgets Limited.听 The four relevant relief requirements were met and the trustees of the Dheneb Widgets Limited EBT made a claim for relief.听

The trustees of the Dheneb Widgets Limited EOT sell 40% of their holding of shares in Dheneb Widgets Limited on 15 December 2017 and so the 바카라 사이트榗ontrolling interest requirement바카라 사이트� is no longer met.听 The trustees are treated as having disposed of and immediately reacquired at market value, immediately before the 바카라 사이트榙isqualifying event바카라 사이트�, the 80% of the company바카라 사이트檚 shares to which they became absolutely entitled on 12 June 2014. 听听听

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