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HMRC internal manual

Capital Gains Manual

Reliefs: employee-ownership trusts: conditions: the 'all-employee benefit requirement': the 'equality requirement'

TCGA92/S236J(1)(a) and (2)

The ‘equality requirement’ is that the trusts of the settlement do not permit any of the settled property to be applied, at any time, otherwise than for the benefit of all the ‘eligible employees’ on the same terms.

The term ‘eligible employees’ is explained at CG67838, with further guidance at CG67839.

There are certain situations in which the ‘equality requirement’ will not be infringed by trusts that do not meet its strict terms.  For more detailed guidance on this subject see CG67840

TCGA92/S236K(7) and (8)

For the purposes of the ‘equality requirement’ references to settled property and ‘eligible employee’ should be interpreted in the same way as they are for the ‘all-employee benefit requirement’ as a whole.