CG17949 - Taper relief: business asset: trustees of a settlement

TCGA92/SCHA1/PARA6 (2) - (4)

The conditions for a company to be a qualifying company of the trustees of a settlement depend on whether or not the company is a trading company or the holding company of a trading group and whether or not you are looking at periods before or from 6 April 2000.

Trading companies

A company is a qualifying company of the trustees of a settlement if it is:

• a trading company or the holding company of a trading group, see CG17953; and
• for periods before 6 April 2000, the trustees were able to exercise at least 25 per cent of the voting rights, see CG17951, in that company; or
• • for periods from 6 April 2000, the company was unlisted, see CG17953, or the trustees can exercise at least 5 per cent of the voting rights, see CG17951, in that company.

Alternatively, a company will also be a qualifying company if all of the following conditions are satisfied:

• the company is a trading company or the holding company of a trading group, see CG17953; and

Either for periods before 6 April 2000

• the trustees were able to exercise at least 5 per cent of the voting rights, see CG17951, in that company; and
• an eligible beneficiary, see CG17965, was a full-time working officer or employee of the company or of a company that has a relevant connection with it, see CG17953;

Or, for periods from 6 April 2000

• the company is listed, see CG 17953, and
• either the trustees were able to exercise at least 5 per cent of the voting rights, see CG17951, in that company or and eligible beneficiary, see CG 17965, was an officer or employee of the company, or of a company having a relevant connection with it, see CG17953.

Non-trading companies

The rules for non-trading companies apply from 6 April 2000. A company will be a qualifying company by reference to the trustees of a settlement at any time from 6 April 2000 when:

• the company was a non-trading company or the holding company of a non-trading group, see CG17953, and
• an eligible beneficiary, see CG17965, was an officer or employee of the company, or of a company having a relevant connection with it, and
• the trustees of the settlement did not have a material interest in the company or in any company which at that time had control of the company, see CG17953.