IHTM42923 - Employee benefit trusts: conditions for relief: former employees
Whilst the words ‘by reference to employment’ in IHTA84/S86(1)(a) are wide enough to cover former employees, the expression ‘employed by or holding office with’ in IHTA84/S86(3) refers to present employees.
But the word ‘comprises’ in IHTA84/S86(3) does not mean ‘consists solely of’. So, as long as the class of beneficiaries includes all or most of the company’s current employees, the fact that former employees (and their dependants) are also included will not prevent the trust qualifying under IHTA84/S86.