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I5.630 Employee trusts—overview

An employee trust (within IHTA 1984, s 86) is one which either indefinitely or until the end of a period (which may be defined by a date or in some other way) do not permit any of the settled property to be applied otherwise than for the benefit of persons of a class defined by reference to¹:

1. Ìý

   •ÌýÌýÌýÌý employment in a particular trade or profession². This would cover employees of the same trade or profession who have different employers

2. Ìý

   •ÌýÌýÌýÌý employment by, or office with, a body carrying on a trade, profession or undertaking³. This would cover employees of the same company although they may undertake different trades; 'body' is not defined but it seems it will not include a partnership (in English law) or a sole trader⁴. Relief under this provision is only available where:

3. 1. Ìý

      –ÌýÌýÌýÌý the class comprises all or most of the persons employed by or holding office with the body concerned⁵. This is to ensure that the trust