Section 236K | Further provision about the equality requirement ^F1

(1)The requirement in section 236J(1)(a) (“the equality requirement”) is not infringed by the trusts by reason only that they—^F1

(a)permit the settled property to be applied, where an eligible employee has died, as if a surviving spouse, civil partner or dependant of the deceased person were the eligible employee (and continued to be employed) for a period of 12 months, or such shorter period as the trusts may provide, starting with the time of death,^F1

(b)prevent the settled property being applied for the benefit of persons who have not been eligible employees for a continuous period of 12 months or such shorter period as the trusts may provide,^F1

(c)permit the trustees to comply with a written request from a person that the trustees do not apply any of the settled property for the benefit of that person, or^F1

(d)prevent the settled property being applied for the benefit of all persons who are eligible employees by reason only that they are office-holders.^F1

(2)The equality requirement is not infringed by the trusts by reason only that, in addition to requiring the settled property to be applied for the benefit of all the eligible employees on the same terms, they also permit the settled property to be applied for charitable purposes.^F1

(3)Subject to subsections (1) and (2), the equality requirement is infringed by the trusts if they permit the settled property to be applied by reference to factors other than those mentioned in subsection (4).^F1

(4)The equality requirement is not infringed by the trusts by reason only that they permit the settled property to be applied for the benefit of all the eligible employees by reference to—^F1

(a)an eligible employee’s remuneration,^F1

(b)an eligible employee’s length of service, or^F1

(c)hours worked by an eligible employee;^F1

but this is subject to subsections (5) and (6).

(5)The equality requirement is infringed by the trusts if they permit any of the settled property to be applied on terms such that some (but not all) eligible employees receive no benefits (other than by virtue of subsection (1)(b), (c) and (d)).^F1

(6)If any of the settled property is applied by reference to more than one of the factors mentioned in subsection (4), the equality requirement is infringed unless—^F1

(a)each factor gives rise to a separate entitlement related to the level of remuneration, length of service or (as the case may be) hours worked, and^F1

(b)the total entitlement is the sum of those separate entitlements.^F1

(7)“Eligible employee” has the same meaning as in section 236J.^F1

(8)In this section, references to the settled property include references to any income arising from it.^F1