Finance Act 2011 | Pensions
Tax settlement deal for employee benefit trusts
HM Revenue & Customs has given employers who have used employee benefit trusts to reduce their tax bill until the end of the year to reach a settlement.
Amended: effective from 31 Dec 2011.
* HMRC will write to all employers or companies who have open EBT enquiries before the end of August 2011 to invite discussion about potential settlements and provide contact details for the HMRC officer dealing with a case. HMRC have put arrangements in place to ensure that a consistent approach is taken to agreeing settlements.
* There is no deadline for the incentive but if employers or companies do not respond by 31 December 2011, HMRC will assume that they are not interested in engaging with them and will look to progress enquiries formally.
* HMRC will continue to enquire into open EBT cases and may open further enquiries during this period including seeking further information.
* Where HMRC is unable to agree settlement proposals with employers or companies then they will, as appropriate, continue to progress cases within the terms of the published Litigation and Settlement Strategy, and the new legislation will apply to continuing EBTs, and funds held in them.