CG67846 - Reliefs: employee-ownership trusts: conditions: the 'all-employee benefit requirement': cases in which the requirement is treated as met: 'significant interest' condition

TCGA92/S236L(1)(b)(ii) and (2)

皇冠体育app trustees held a 鈥榮ignificant interest鈥� in the company on 10 December 2013 if all the following conditions applied on that date.

  • 皇冠体育appy held 10% or more of the ordinary share capital of C and had powers of voting on all questions affecting C which, if exercised, would have yielded 10% or more of the votes capable of being exercised on such questions.
  • 皇冠体育appy were entitled to 10% or more of the profits available for distribution to the equity holders of C.
  • 皇冠体育appy would have been entitled on a winding-up of C to 10% or more of the assets available for distribution to its equity holders.
  • 皇冠体育appre were no provisions in any agreement or instrument affecting the constitution or management of C, or its shares or securities, whereby the first to third conditions above could cease to be satisfied without the trustees鈥� consent.

Example 20

皇冠体育app trustees of the Sulaphat Widgets Limited Employee Trust own 20% of the ordinary share capital of Sulaphat Widgets Limited, which entitles them to 20% of the voting rights in matters affecting the company, to 20% of its profits available for distribution and to 20% of any assets in a winding up. 皇冠体育appre is an agreement in place, dated 19 February 2011, under which in certain circumstances the trustees are not permitted to vote on matters affecting the company. 皇冠体育app existence of this agreement means that the trustees did not hold a 鈥榮ignificant interest鈥� in Sulaphat Widgets Limited on 10 December 2013.

For more information on the circumstances in which trustees hold a 鈥榮ignificant interest鈥�, see CG67875.