TSEM5025 | Trusts for particular purposes: employment related trusts - general employee benefit trusts

Employee benefit trusts are normally created by means of a discretionary settlement.

General employee benefit trusts will 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)

Unapproved share schemes are treated in the same way as general employee benefit trusts. An employment trust as a general employee benefit trust if it is not

• a retirement benefits scheme

• an approved share scheme.