Standard documents

A precedent to notify the trustee of an employee benefit trust that the company intends to grant share options or awards which the company intends will fall within an operating agreement with the trustee, and be satisfied by the trustee.  The notification of proposed grant is a requirement under the operating agreement. Finance Act 2011 contains anti-avoidance legislation, enacted as Part 7A of the Income Tax (Earnings and Pensions) Act 2003, which taxes disguised remuneration provided to employees through third parties such as employee benefit trusts. The legislation contains certain exemptions which may apply to normal employee share schemes arrangements operated through EBTs. However, the provisions are complicated and restrictive.  This document has been updated to reflect Part 7A.  From 6 April 2011 a company asking an EBT to satisfy options or awards (or the trustee carrying out administrative tasks under the operating agreement) may trigger an "earmarking" tax charge under Part 7A, so specialist advice should be taken before entering into an operating agreement, or asking a trustee to satisfy options or awards.  For more information, see Practice note, Disguised remuneration: Part 7A of the Income Tax (Earnings and Pensions) Act 2003.

A standard form letter from a private company to the trustees of its employee benefit trust (EBT), recommending the purchase of shares from a departing employee under the mandatory leaver transfer provisions of the company's articles of association.

A precedent for board minutes to recommend to the trustee of an employee benefit trust that it grant options/awards to beneficiaries. Finance Act 2011 contains anti-avoidance legislation, enacted as Part 7A of the Income Tax (Earnings and Pensions) Act 2003, which taxes disguised remuneration provided to employees through third parties such as employee benefit trusts. The legislation contains certain exemptions which may apply to normal employee share schemes arrangements operated through EBTs. However, the provisions are complicated and restrictive. Companies and their advisers should consider the impact of Part 7A when considering making a recommendation to an EBT to grant options or awards.  For more information, see Practice note, Disguised remuneration: Part 7A of the Income Tax (Earnings and Pensions) Act 2003.

A precedent for board minutes to recommend the purchase of shares from a leaver by the trustees of an employee benefit trust.

A precedent for board minutes to recommend the termination of an employee benefit trust by the trustees.

A precedent for a letter to the trustee of an employee benefit trust recommending that the trustee terminate the trust.

A precedent for a set of board minutes to approve the establishment and initial funding of an onshore or offshore employee benefit trust.

A trust deed to establish and regulate an employee benefit trust for the provision of benefits to employees and former employees and their dependants.

A simple loan document under which a company agrees to makes a one-off loan of a fixed amount to an employee benefit trust for the acquisition of shares.

Any person (other than a barrister) who has been involved in setting up an offshore employee benefit trust where the settlor is UK domiciled must send a section 218 IHTA 1984 notice to HMRC. Penalties apply if this notice is not sent to HMRC within three months of the creation of the trust.