Income Tax (Earnings and Pensions) Act 2003 section 550

Meaning of "employee benefit trust"

Section 550 defines what qualifies as an "employee benefit trust" for the purposes of this Chapter, by setting out two conditions that must both be met.

• An employee benefit trust must be a trust established in relation to a company where two conditions (A and B) are both satisfied.
• Condition A requires that all or most of the company's employees are eligible to benefit under the trust.
• Condition B requires that, since 13 March 1989, either no trust property has been disposed of, or any disposal was either made in the ordinary management of the trust or was a "qualifying disposal" as defined in section 551.
• "Disposal" is broadly defined to include sale, loan, or any other means of parting with trust property.