BIM44125 - Specific deductions - employee share schemes: Contributions to QUESTs, a/c periods starting before 1 Jan 2003 - recovery of relief

FA89/S68 - FA89/S72 provide for a charge to tax to be made on the trustees of a qualifying employee share ownership trust if, after they have received a contribution from a company which qualifies for relief under FA89/S67, they breach certain specific requirements.

Although the charge is intended to withdraw, in whole or in part, the relief given to contributing companies, it is imposed on the trustees in the first instance because only they have control over their actions and it would therefore be inappropriate to impose a charge on the contributing companies.

Guidance covering the recovery of relief from trustees is at TSEM5525 onwards.