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EBT schemes deadline extended to 31March2017

Disguised remuneration schemes were popular ways of renumerating key members of staff by a company paying money into a trust which would then make loans to the staff members which are taxed as loans, which attract a benefit in kind tax charge which offers significant tax savings.

HMRC expects to win back £2.5bn from EBT’S over the next five or so years as part of HMRC’s crackdown on anti-avoidance tax schemes.

HMRC has extended the deadline, and this should be good news to anyone who has funds in an EBT and has not yet come forward to HRMC as it means just the original contribution will be taxed, not the roll up of the investment.