Part 7

Employment income: income and exemptions relating to securities
Chapter 11

Supplementary provisions about employee benefit trusts

Introduction

Application of this Chapter
549
1
This Chapter applies for the purposes of any listed provision in circumstances where—
a
an individual (“B”) is interested as a beneficiary of an employee benefit trust in shares or obligations of a particular company (“the company”), and
b
the question arises under that provision whether the trustees of the trust are, as a result of B’s being so interested, to be regarded as associates of B’s for the relevant purposes.
The relevant purposes are those of the operation, in relation to the company, of the “no material interest” requirement contained in the Schedule to this Act in which the listed provision appears.
2
In this Chapter “listed provision” means any of the following provisions (under which trustees of an employee benefit trust are not to be regarded as associates if specified limits relating to share ownership are not exceeded)—
a
paragraph 23(2) of Schedule 2 ( ... SIPs),
b
paragraph 15(2) of Schedule 3 ( ... SAYE option schemes),
c
paragraph 13(2) of Schedule 4 ( ... CSOP schemes), or
d
paragraph 32(2) of Schedule 5 (enterprise management incentives).
3
The general effect of this Chapter is that if the provisions of—
a
sections 552 and 553 (attribution of interest in company to beneficiary or associate), or
b
section 554 (attribution of further interest),
apply in relation to B or an associate of B's, B or the associate is to be treated for the purposes of the listed provision as having been the beneficial owner of a particular percentage of the company’s ordinary share capital on a particular date.
4
In this Chapter, in relation to an individual, “associate”—
a
has the meaning given by section 448 of CTA 2010 (close companies: meaning of “associate”), but
b
does not include the trustees of an employee benefit trust as a result only of the individual’s having (as mentioned in subsection (1)(a)) an interest in shares or obligations of the company which are subject to the trust.
5
In this Chapter “employee” means the holder of a taxable employment under Part 2 (as defined in section 66(3)), and accordingly includes an office-holder whose office is within the scope of that definition as a result of section 5(1).
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Words in s. 549(4)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 393 (with Sch. 2)
Word in s. 549(2)(b) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 135, 146 (with Sch. 8 paras. 147-157)
Word in s. 549(2)(a) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 48, 89 (with Sch. 8 paras. 90-96)
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)
Word in s. 549(2)(c) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 199, 204 (with Sch. 8 paras. 205-215)