TSEM5525 - Trusts for particular purposes: employment-related trusts: ESOTs: chargeable events - recovering contributions from trustees

FA89/S68 onwards

FA89/S68 onwards provides for a charge to tax to be made on trustees of a QUEST in respect of contributions they received from a company for which relief has been given under FA89/S67. The charge is imposed when a ‘chargeable event occurs (FA89/S68(1)). FA89/S69 defines the chargeable events.

The charge is to withdraw, in whole or part, the relief given to the contributing company. It arises initially on the trustees. This is because only they have control over their actions. Where the tax is not paid by the trustees within 6 months then the tax to be paid by the company that was allowed the deduction under FA89/S67 or the company that established the QUEST.

The assessing of the chargeable amounts under FA89 Sections 68 and 71 is the responsibility of the Trust Office. ESSU will give guidance to the Trust Office on the chargeable amounts that should be assessed for a year of assessment.

For advice, in case of difficulty, refer to and, Employee Share Scheme Unit (ESSU), Room G52 100 Parliament Street.