Reliefs: employee-ownership trusts: glossary
The definitions below apply for the purposes of the guidance on employee-ownership trusts in CG67800+, and are based on the provisions of TCGA92/Ss236H – 236U.
Authorised transfer Defined at TCGA/S236J(7), see CG67836.
Company The meaning is given by TCGA92/S170(9), more details of which are at CG45105.
Connected persons In deciding if one person is connected with another, TCGA92/S286 applies with the modification that relative means brother, sister, ancestor, lineal descendant, uncle, aunt, nephew and niece. Guidance on the unmodified interpretation of ‘connected persons’ is at CG14580+.
Disqualifying events Occur in the situations set out in TCGA92/Ss236O, 236P and 236R, and result in the denial and withdrawal of relief. Guidance on this point is at CG67860+.
Eligible employee Defined at TCGA92/S236J(3), see CG67838.
Equality requirement This is an element of the ‘all-employee benefit requirement’. It is introduced by TCGA92/S236J(1)(a) and further explained at TCGA92/S236K, see CG67837+.
Excluded participator Defined at TCGA92/S236J(5), see CG67839.
Group This is to be construed in accordance with TCGA92/S170(3)-(9). Guidance on this point is at CG45110+.
Ordinary share capital The meaning is given by CTA10/S1119. It is all the company’s issued share capital (however described), other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the company’s profits.
Principal company of a group This is to be construed in accordance with TCGA92/S170(3)-(9). Guidance on this point is at CG45110.
Significant interest Defined at TCGA92/S236L(2), see CG67846.
Trade This means any trade which is conducted on a commercial basis and with a view to the realisation of profits.
Transferring trustee Defined at TCGA92/S236Q(1)(a), see CG67865.
The relief requirements, see CG67820, that have to be met before any relief can be claimed are as follows.
Trading Defined at TCGA92/S236I, see CG67821.
All-employee benefit Defined at TCGA92/S236J, see CG67822.
Controlling interest Defined at TCGA92/S236M, see CG67850.
Limited participation Defined at TCGA92/S236N, see CG67855.
Related disposal Defined at TCGA92/S236H(6), see CG67825.