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HMRC internal manual

Trusts, Settlements and Estates Manual

Trusts for particular purposes: employment related trusts - general employee benefit trusts

These trusts are normally created by means of a discretionary settlement.

General employee benefit trusts have titles such as

  • employee benefit trust
  • employee trust
  • business trust
  • discretionary bonus trust
  • remuneration trust
  • staff benevolent fund

The funding may be by annual or periodic contributions. These trusts have various functions, to provide

  • general benefits or bonuses (TSEM5050)
  • sick pay or medical expenses (TSEM5075)
  • for education (TSEM5175)

We also treat unapproved share schemes in the same way as general employee benefit trusts. So deal with an employment trust as a general employee benefit trust if it is not

  • a retirement benefits scheme
  • an approved share scheme.