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HMRC internal manual

Capital Gains Manual

Reliefs: employee-ownership trusts: conditions: the 'all-employee benefit requirement': cases in which the requirement is treated as met

TCGA92/S236L(1) and (3)

This allows a settlement which would not otherwise meet the ‘all-employee benefit requirement’ at any time to be treated as meeting the requirement at that time if the conditions listed below are met.

  • The settlement was created before 10 December 2013 and on that date did not, ignoring these provisions which treat it as meeting the requirement, meet the ‘all-employee benefit requirement’.  For guidance about settlements which actually meet the ‘all-employee benefit requirement’, see CG67835 to CG67841
  • The ‘trusts for benefit of employees’ condition, see CG67845.
  • The ‘significant interest’ condition, see CG67846.
  • The ‘application of settled property’ condition, see CG67847.

The aim is to allow some settlements which were created before the relevant legislation was published to be treated as if they were EOTs without having to resettle property or amend their deeds.  Such settlements must meet certain conditions, concerning the behaviour of the trustees over a specified period, as well as the other relief requirements.

For the purposes of the ‘all-employee benefit requirement’ references to settled property include references to any income arising from it.

The guidance at CG67836, CG67838 and CG67839 is relevant to the matters above.