HMRC Publishes FAQs on Proposed Anti-Avoidance Provisions Targeting Employee Benefit Trusts

March 07, 2011

As a part of an ongoing consultation into the draft “disguised remuneration” legislation targeting employee benefit trusts and certain other vehicles, the UK’s HM Revenue & Customs have published questions and answers dealing with interested parties’ comments. The FAQs specifically address some unintended consequences of the original draft and provide some comfort that common non-tax driven remuneration structures should not be caught. However, they also confirm that the legislation is deliberately broad and will remain so when applied to planning with a tax avoidance purpose. This update looks in more detail at the FAQs.

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