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HA 27: Attribution when loss results in reduction in value of shares
or “This rule about share value losses no longer applies”
You could also call this:

“Trustee shareholders must choose who to make elections with”

If you’re a shareholder acting as a trustee, you need to make an election together with other people. You have two choices for who to make the election with:

You can make the election with one or more beneficiaries of the trust. These beneficiaries must be real people (not companies) and must be old enough or mentally able to make legal decisions.

If none of the beneficiaries can legally make decisions, you can make the election with another real person. This person might be you (the trustee) or someone else. This person will take on responsibility for the beneficiaries.

This rule is part of the section about elections by shareholders in the law about taxing certain types of businesses.

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Next up: HA 29: Elections by majority shareholders

or “How major shareholders can decide a company's tax status”
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Part H Taxation of certain entities
Qualifying companies (QC)

HA 28Elections by trustee shareholders

  1. If a shareholder referred to in section HA 5 is acting as trustee, they must make an election together with—

  2. 1 or more beneficiaries of the trust who are natural persons with legal capacity; or
    1. if no beneficiary has legal capacity, a natural person, who may also be the trustee, who assumes liability on behalf of beneficiaries.

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