Section 550 — Income Tax (Earnings and Pensions) Act 2003: Meaning of “employee benefit trust”

Meaning of “employee benefit trust” 550 1 In this Chapter “ employee benefit trust ”, in relation to a company, means a trust where conditions A and B are met.

2 Condition A is that all or most of the employees of the company are eligible to benefit under the trust.

3 Condition B is that after 13th March 1989 either—

a there has been no disposal of any of the property subject to the trust, or b any disposal of any of that property was a disposal within subsection (4).

4 The disposals within this subsection are—

a disposals in the ordinary management of the trust, or b qualifying disposals (within the meaning given by section 551).

5 In this section and section 551 “ disposal ” means disposal by sale, loan or otherwise.