SumsU.K.
6(1)The trust deed must require that any sum received by the trustees—U.K.
(a)must be expended within the relevant period,
(b)may be expended only for one or more of the qualifying purposes, and
(c)must, while it is retained by them, be kept as cash or be kept in anaccount with a bank or building society.
(2)For the purposes of sub-paragraph (1) above the relevant period is theperiod of nine months beginning with the day found as follows—
(a)in a case where the sum is received from the founding company, or acompany which is controlled by that company at the time the sum is received,the day following the end of the period of account in which the sum is chargedas an expense of the company from which it is received;
(b)in any other case, the day the sum is received.
(3)For the purposes of sub-paragraph (1) above each of the following is aqualifying purpose—
(a)the acquisition of shares in the founding company;
(b)the repayment of sums borrowed;
(c)the payment of interest on sums borrowed;
(d)the payment of any sum to a person who is a beneficiary under the termsof the trust deed;
(e)the meeting of expenses.
(4)The trust deed must provide that, in ascertaining for the purposes of arelevant rule whether a particular sum has been expended, sums receivedearlier by the trustees shall be treated as expended before sums received bythem later; and a relevant rule is one which is included in the trust deed andconforms with sub-paragraph (1) above.
(5)The trust deed must provide that, where the trustees pay sums to differentbeneficiaries at the same time, all the sums must be paid on similar terms.
(6)For the purposes of sub-paragraph (5) above, the fact that terms varyaccording to the levels of remuneration of beneficiaries, the length of theirservice, or similar factors, shall not be regarded as meaning that the termsare not similar.
Modifications etc. (not altering text)
C1 See Finance Act 1990 (c. 29) ss.31–40—roll-over relief for disposal of shares to employeeshare ownership trusts