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Legislation
Taxation of Chargeable Gains Act 1992

Crossheading Employee-ownership trusts

  • Section 236H Disposals to employee-ownership trusts
  • Section 236I Trading requirement
  • Section 236J All-employee benefit requirement
  • Section 236K Further provision about the equality requirement
  • Section 236L Cases in which all-employee benefit requirement treated as met
  • Section 236LA Trustee independence requirement
  • Section 236M Controlling interest requirement
  • Section 236N Limited participation requirement
  • Section 236O No section 236H relief if disqualifying event in next four tax years
  • Section 236P Events which trigger deemed disposal and reacquisition by trustees
  • Section 236Q Relief for deemed disposals under section 71
  • Section 236R No section 236Q relief if disqualifying event in next four tax years
  • Section 236S Identification of shares where section 236H or 236Q applies
  • Section 236T Further provision about significant and controlling interests
  • Section 236U Interpretation of sections 236H to 236U
  1. Employee-ownership trusts
  2. Trustee independence requirement

Section 236LA | Trustee independence requirement F1

From legislation.gov.uk

(1)A settlement meets the trustee independence requirement if—

(a)less than 50% of the trustees are persons who are excluded participators, and

(b)excluded participators do not have control of the settlement.

(2)In this section “excluded participator” means—

(a)a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or

(b)a company not falling within paragraph (a), if 50% or more of its directors are persons falling within that paragraph.

(3)Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—

(a)dispose of, advance, lend, invest, pay or apply settlement property;

(b)vary or terminate the settlement;

(c)add or remove a person as a beneficiary or to or from a class of beneficiaries;

(d)appoint or remove trustees or give another individual control over the settlement;

(e)direct the exercise of a power mentioned in sub-paragraphs (a) to (d).

Notes

  1. F1

    S. 236LA inserted (with effect in accordance with Sch. 6 para. 3(5) of the amending Act) by Finance Act 2025 (c. 8), Sch. 6 para. 3(2)(5)

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