CG67820 | Reliefs: employee-ownership trusts: conditions: the eight 'relief requirements'

Throughout this manual, all legislative references are to Taxation of Chargeable Gains Act 1992 (“TCGA92”) unless otherwise stated.

TCGA92/S236H(4)

This sets out eight ‘relief requirements’:

• the ‘trustee residence requirement’, see CG67826,

• the ‘trading requirement’, see CG67821

• the ‘all-employee benefit requirement’, see CG67822

• the ‘trustee independence requirement’, see CG67827,

• the ‘controlling interest requirement’, see CG67823

• the ‘consideration requirement’ see CG67828,

• the ‘limited participation requirement’, see CG67824 and

• the ‘related disposal requirement’, see CG67825.

The first to fifth and the seventh requirements have to be met in all cases where relief is claimed under either S236H or S236Q.

The sixth and eighth requirements are not relevant where there has been a deemed disposal under S71.

The ‘trustee residence requirement’, ‘trustee independence requirement’ and ‘consideration requirement’ only apply to disposals made on or after 30 October 2024.

More detailed guidance about the other five requirements is at CG67830 to CG67856.