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HMRC internal manual

Trusts, Settlements and Estates Manual

Trusts for particular purposes: new employer sick pay scheme

The trustees should consider the following

  • Has the trust received income or acquired chargeable assets?
  • If not, is it likely to do so in the future?

Answer to both questions is no

If the answer is no, to both questions,  the trustees do not need to complete annual returns but should be mindful of their obligation to notify any future chargeability to tax (TMA70/ Section 7).

Answer to a question is yes

If the answer is yes to either question then the sick pay scheme will be treated as a new employee benefit trust (TSEM5050).