EBTs and employment-related securities anti-avoidance

Michael Deeks, Tax Partner, Olswang

In their update on enforcement and compliance, the Government have announced that they will be taking action to prevent attempts to avoid avoid tax and National Insurance contributions through the use of employee benefit trusts and other arrangements to disguise payments of remuneration.  It intends to introduce such anti-avoidance legislation to take effect from 6 April 2011.

They have also announced that there will be a review and consultation, during 2010, on taxation of “geared growth arrangements” used in connection with employment-related securities, to ensure income from employment is taxed correctly.

No other detail has been published at the moment but it something on which we will certainly be seeking further clarification from HMRC.

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