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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Trusts for particular purposes: employment - related trusts: FURBS: loss of exemption in winding up - examples

Example 1

FURBS established 6 April 2000. In July 2005 it provides non-relevant benefits (based on the ICTA/S612 definition of a relevant benefit as at 2005). Because it provides non-relevant benefits, it was not established solely to provide relevant benefits; therefore it loses the exemption from the rate applicable to trusts/dividend trust rate back to the date of establishment 6 April 2000.

Example 2

FURBS established 6 April 2000. In July 2005 it provides only relevant benefits (based on the ICTA/S612 definition of a relevant benefit as at 2005). Because it was established solely to provide relevant benefits, it does not lose the exemption from the rate applicable to trusts/dividend trust rate up to 5 April 2006.

Example 3

FURBS established 6 April 2000 (now an EFRBS). In July 2007 it provides non-relevant benefits (based on the ITEPA/S393B definition of a relevant benefit as at 2007). Because it provides non-relevant benefits, it was not established solely to provide relevant benefits; therefore it loses the exemption from the rate applicable to trusts/dividend trust rate back to the date of establishment 6 April 2000.

Example 4

FURBS established 6 April 2000 (now an EFRBS). In July 2007 it provides only relevant benefits (based on the ITEPA/S393B definition of a relevant benefit as at 2007). Because it was established solely to provide relevant benefits, it does not lose the exemption from the rate applicable to trusts/dividend trust rate up to 5 April 2006.