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YB 14: Tripartite relationship
or “How you can be associated with someone through a third person”
You could also call this:

“When trusts are set up for employees and not controlled by related parties”

You don’t need to worry about Section YB 6(1) if the trust is only for employees of an employer, and neither the person who benefits from it nor anyone connected to them controls the trust.

For a person who sets up a trust (but isn’t a company), sections YB 7, YB 8, and YB 9(1) don’t apply if the trust is only for their employees, and neither they nor anyone connected to them controls the trust.

If a company sets up a trust, sections YB 7, YB 8, and YB 9(1) don’t apply if it’s only for their employees. Also, the trust can’t be controlled by the company, anyone connected to it, its executives, directors, or anyone who owns a big part of the company.

Section YB 11 doesn’t apply if the trust is only for employees of an employer, and neither the person who can appoint or remove trustees, nor anyone connected to them, controls the trust.

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Next up: YB 16: Exceptions for certain trusts and charitable organisations

or “Some trusts and charities are exempt from rules about connected persons”
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Part Y Definitions and related matters
Associated persons and nominees: Table Y1: Associated person rules

YB 15Exceptions for employee trusts

  1. Section YB 6(1) does not apply if—

  2. the trust is only for the benefit of employees of an employer; and
    1. neither the beneficiary nor any person associated with the beneficiary directly or indirectly controls the trust.

      1. For a settlor that is not a company, sections YB 7, YB 8, and YB 9(1) do not apply if—

      2. the settlor settles property on the terms of the trust only for the benefit of employees of the settlor; and
        1. neither the settlor nor any person associated with the settlor directly or indirectly controls the trust.

          1. For a settlor that is a company, sections YB 7, YB 8, and YB 9(1) do not apply if—

          2. the settlor settles property on the terms of the trust only for the benefit of its employees; and
            1. none of the following directly or indirectly controls the trust:
              1. the settlor:
                1. a person associated with the settlor:
                  1. an executive of the settlor:
                    1. a director of the settlor:
                      1. a person holding a direct voting interest of 25% or more in the settlor:
                        1. if a market value circumstance exists for the settlor, a person holding a direct market value interest of 25% or more in the settlor.

                        2. Section YB 11 does not apply if—

                        3. the trust is only for the benefit of employees of an employer; and
                          1. neither the person (person A) who has a power of appointment or of removal of a trustee nor a person associated with person A directly or indirectly controls the trust.

                            Notes
                            • Section YB 15: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).