Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Co-operative trust

07 July 2020
Issue: 4751 / Categories: Forum & Feedback
Ending an employee ownership trust.

Our client’s business is owned by an employee ownership trust. When it was established it qualified for all the reliefs and the shareholders did not pay any capital gains tax on the sale. The company is in the process of being sold and the trustees are considering what they should do with the proceeds which includes making payments to the employees. Given that the employees are receiving the funds by reason of their employment we assume that the amounts will be subject to PAYE and National Insurance contributions.

However will the company be able to obtain a corporation tax deduction on the payments made to the trust now that the employees will be receiving funds? We assume that no inheritance tax will be payable on the basis that payments to the employee will be...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon