SCHEDULE 37 Companies Owned by Employee-ownership Trusts | Part 3 | Inheritance Tax Relief | Finance Act 2014 C26

Part 3 Inheritance Tax Relief

Finance Act 2014 (2014 c 26) | Legislation

Part 3 Inheritance Tax Relief

IHTA 1984 is amended as follows.

(1) After section 13 insert—

“13A Dispositions by close companies to employee-ownership trusts

(1) A disposition of property made to trustees by a close company (“C”) whereby the property is to be held on trusts of the description specified in section 86(1) is not a transfer of value if—

(a) C meets the trading requirement,

(b) the trusts are of a settlement which meets the all-employee benefit requirement, and

(c) the settlement does not meet the controlling interest requirement immediately before the beginning of the tax year in which the disposition of property occurs but does meet it at the end of that year.

(2) Sections 236I, 236J, 236K, 236M and 236T (but not 236L) of the 1992 Act apply to determine whether—

(a) C meets the trading requirement;

(b) the settlement meets the all-employee benefit requirement;

with references in those sections to “C” being read accordingly.

(3) In this section—

“close company” has the same meaning as in Part 4 of this Act;

“tax year” means a year beginning on 6 April and ending