Part 7

Employment income: income and exemptions relating to securities
Chapter 11

Supplementary provisions about employee benefit trusts

Employee benefit trusts

Meaning of “employee benefit trust”
550
1
In this Chapter “employee benefit trust”, in relation to a company, means a trust where conditions A and B are met.
2
Condition A is that all or most of the employees of the company are eligible to benefit under the trust.
3
Condition B is that after 13th March 1989 either—
a
there has been no disposal of any of the property subject to the trust, or
b
any disposal of any of that property was a disposal within subsection (4).
4
The disposals within this subsection are—
a
disposals in the ordinary management of the trust, or
b
qualifying disposals (within the meaning given by section 551).
5
In this section and section 551 “disposal” means disposal by sale, loan or otherwise.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
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)