Commentary

I5.338 Property becoming subject to trusts for employees

IHT, trusts and estates

I5.338 Property becoming subject to trusts for employees

I5.338 Property becoming subject to trusts for employees

Property becoming subject to employee benefit trusts

Subject to certain conditions, there is no IHT charge1 where shares or securities of a company cease to be relevant property on the occasion of their transfer to employee benefit trusts2 (see I5.631).

Those conditions are essentially the same as those for a transfer of value in favour of an employee benefit trust to be exempt under the rules detailed at I5.6303, with the additional condition that the settlor and persons connected with him must be excluded from benefit.

HMRC have published details of specific inheritance

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