CG67847 - Reliefs: employee-ownership trusts: conditions: the 'all-employee benefit requirement': cases in which the requirement is treated as met: 'application of settled property' condition

TCGA92/S236L(1)(c) and FA14/Sch37, Para 4

The 鈥榓pplication of settled property鈥� condition is the principal behavioural condition which the trustees of a settlement created before 10 December 2013 must meet in order for the settlement to be treated as meeting the 鈥榓ll-employee benefit requirement鈥�, see CG67844. This condition is met at a particular time if during the 12 months ending with that time the trustees do not

  • Apply any of the settled property otherwise than for the benefit of all eligible employees on the same terms. This is known as the 鈥榖ehaviour requirement鈥� and is covered in more detail in CG67848.
  • Apply any of the settled property by creating a trust.
  • Apply any of the settled property by transferring property to the trustees of any settlement other than by an 鈥榓uthorised transfer鈥�, see CG67836.
  • Make loans to beneficiaries of the trusts of the settlement.

For these purposes, but no others, anything done by the trustees before 10 December 2013 is to be disregarded.