Purchasing a company that has implemented trust-based remuneration planning brings with it some technical and practical challenges. Jon Robinson and Chris Thomas offer guidance to buyers
With HMRC increasing its efforts in challenging tax avoidance schemes many companies that have undertaken remuneration planning involving employee benefit trusts (EBTs) and employer-financed retirement benefit schemes (EFRBS) now find themselves subject to enquiries. Whilst HMRC will be principally challenging the alleged underpayment (or non-payment) of PAYE and NIC in respect of historic steps under such planning this is not the whole story as there now also exists the threat of disguised remuneration charges under ITEPA 2003 Part 7A on any ‘relevant steps’ taken in relation to the arrangements.
HMRC’s dislike of trust-based remuneration planning...
