There is a disposal of trust business assets where—
the trustees of a settlement make a disposal of settlement business assets (see subsection (2)),
there is an individual who is a qualifying beneficiary (see subsection (3)), and
the relevant condition is met (see subsections (4) and (5)).
In this Chapter "settlement business assets" means—
assets consisting of (or of interests in) shares in or securities of a company, or
assets (or interests in assets) used or previously used for the purposes of a business,
which are part of the settled property.
An individual is a qualifying beneficiary if the individual has, under the settlement, an interest in possession (otherwise than for a fixed term) in—
the whole of the settled property, or
a part of it which consists of or includes the settlement business assets disposed of.
In relation to a disposal of settlement business assets within paragraph (a) of subsection (2) the relevant condition is that, throughout a period of 2 years ending not earlier than 3 years before the date of the disposal—
the company is the qualifying beneficiary's personal company and is either a trading company or the holding company of a trading group, and
the qualifying beneficiary is an officer or employee of the company or (if the company is a member of a group of companies) of one or more companies which are members of the trading group.
In relation to a disposal of settlement business assets within paragraph (b) of that subsection, the relevant condition is that—
the settlement business assets are used for the purposes of the business carried on by the qualifying beneficiary throughout the period of 2 years ending not earlier than 3 years before the date of the disposal, and
the qualifying beneficiary ceases to carry on the business on the date of the disposal or within the period of three years before that date.
In subsection (5)—
the reference to a business carried on by the qualifying beneficiary includes a business carried on by a partnership of which the qualifying beneficiary is a member, and
the reference to the qualifying beneficiary ceasing to carry on the business includes the qualifying beneficiary ceasing to be a member of the partnership or the partnership ceasing to carry on the business.