Part VII

Other property, businesses, investments etc.

Employee-ownership trusts

Relief for deemed disposals under section 71
236Q
1
This section applies where—
a
a deemed disposal arises under section 71(1) by reason of the trustees of a settlement (“the acquiring settlement”) becoming absolutely entitled to settled property as against the trustee of that settled property (“the transferring trustee”),
b
that settled property consists of ordinary share capital of a company,
c
the relief requirements in section
236H(4)(za)
to
(c) and (d)
are met, and
d
the transferring trustee makes a claim under this section.
2
Section 17(1) (disposals and acquisitions treated as made at market value) does not apply to the disposal.
3
The deemed disposal and acquisition by the transferring trustee under section 71(1) are to be treated for the purposes of this Act as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.
4
For the purposes of section 236P the trustees of the acquiring settlement are treated as acquiring the ordinary share capital from the transferring trustee, at the time of the deemed disposal, in circumstances where section 236H applies.
5
In applying sections 236H(4), 236I to 236P and 236T for the purposes of this section—
a
references in those provisions to the settlement are to be read as references to the acquiring settlement, and
b
references in those provisions to C are to be read as references to the company mentioned in subsection (1)(b).
6
A claim under this section must include—
a
information to identify the acquiring settlement,
b
the name of the company mentioned in subsection (1)(b) and the address of its registered office, ...
ba
the number of persons who at the time of the disposal are employees of—
i
C, or
ii
if C is the principal company of a trading group (within the meaning of section 236I(3)), any member of that group,
c
the date of the deemed disposal and the number of shares deemed to have been disposed of.
6A
But where the person making the claim is unable to include the number of employees in the claim as required by subsection (6)(ba) because they have been unable to ascertain that number, that requirement is to be taken to be met if—
a
the person has taken all reasonable steps to ascertain that number, and—
b
the claim contains a statement that the person has taken such steps.
7
Section 236R makes provision about events which prevent a claim being made under this section and circumstances in which a claim is revoked.
Ss. 236H-236U and cross-heading inserted (with effect in accordance with Sch. 37 para. 2 of the amending Act) by Finance Act 2014 (c. 26), Sch. 37 para. 1 (with Sch. 37 paras. 3, 4)
S. 236Q(6A) inserted (with effect in accordance with Sch. 6 para. 7(3) of the amending Act) by Finance Act 2025 (c. 8), Sch. 6 para. 7(2)(b)(3)
Word in s. 236Q(1)(c) substituted (with effect in accordance with Sch. 6 para. 2(5) of the amending Act) by Finance Act 2025 (c. 8), Sch. 6 para. 2(4)(5)
Words in s. 236Q(1)(c) substituted (with effect in accordance with Sch. 6 para. 5(3) of the amending Act) by Finance Act 2025 (c. 8), Sch. 6 para. 5(2)(3)
Word in s. 236Q(6) omitted (with effect in accordance with Sch. 6 para. 7(3) of the amending Act) by virtue of Finance Act 2025 (c. 8), Sch. 6 para. 7(2)(a)(i)(3)
S. 236Q(6)(ba) inserted (with effect in accordance with Sch. 6 para. 7(3) of the amending Act) by Finance Act 2025 (c. 8), Sch. 6 para. 7(2)(a)(ii)(3)