TSEM5025 - Trusts for particular purposes: employment related trusts - general employee benefit trusts

Employee benefit trusts are normally created by means of a discretionary settlement.

General employee benefit trusts will have titles such as

  • employee benefit trust
  • employee trust
  • business trust
  • discretionary bonus trust
  • remuneration trust
  • staff benevolent fund

The funding may be by annual or periodic contributions. These trusts have various functions, to provide

Unapproved share schemes are treated in the same way as general employee benefit trusts. An employment trust as a general employee benefit trust if it is not

  • a retirement benefits scheme
  • an approved share scheme.