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YB 15: Exceptions for employee trusts
or “When trusts are set up for employees and not controlled by related parties”
You could also call this:

“Some trusts and charities are exempt from rules about connected persons”

You need to know about some special cases where the rules about people being connected to each other don’t apply. These cases are about certain trusts and charitable organisations.

There are two types of trusts where the rules don’t apply between the trustee and other people. The first type is a lines trust set up under the Energy Companies Act 1992. The second type is an approved unit trust mentioned in the Income Tax Act (Exempt Unit Trusts) Order 1990.

Also, if a charitable organisation is the beneficiary of a trust, some rules don’t apply. In this case, the trustee and the beneficiary aren’t considered connected. The same goes for the settlor (the person who set up the trust) and the beneficiary.

Remember, these exceptions are part of a bigger set of rules about how people can be connected in tax matters. If you need more information, you might want to look at sections YB 5, YB 6(1), and YB 9(1) of the law.

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Next up: YB 17: Partnerships: partnership and associate of partner

or “This provision about partnerships and associated partners has been removed”
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Part Y Definitions and related matters
Associated persons and nominees: Table Y1: Associated person rules

YB 16Exceptions for certain trusts and charitable organisations

  1. Sections YB 5 and YB 6(1) do not apply to a trustee and another person if the trust is—

  2. a lines trust established under the Energy Companies Act 1992:
    1. an approved unit trust referred to in clause 2 of the Income Tax Act (Exempt Unit Trusts) Order 1990.

      1. Sections YB 6(1) and YB 9(1) do not apply to a trustee and a beneficiary or a settlor and a beneficiary if the beneficiary is a charitable organisation.

      Notes
      • Section YB 16: substituted, on , by section 563(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).