Paragraph 2 Requirement for trustees of employee-ownership trusts to be UK resident

In section 236H(4) (disposals to employee-ownership trusts), before paragraph (a) insert—

“(za)

that the trustees of the settlement are resident in the United Kingdom at the time of the disposal and continue to be UK resident for the remainder of the tax year in which that time falls,”.

In section 236O(2) (no section 236H relief if disqualifying event in next tax year), before paragraph (a) insert—

“(za)

the trustees of the settlement cease to be resident in the United Kingdom,”.

In section 236P (events which trigger deemed disposal and reacquisition by trustees), after subsection (3) insert—

“(3A)

See also section 80 (trustees ceasing to be resident in U.K.), which provides for similar consequences in circumstances where the trustees of the settlement cease to be resident in the United Kingdom.”

In section 236Q(1)(c) (relief for deemed disposals under section 71), for “236H(4)(a)” substitute “236H(4)(za)”.

The amendments made by this paragraph have effect in relation to disposals made on or after 30 October 2024.