Since the disguised remuneration rules were announced, many HNWI and non-domiciled clients will be looking for alternative ways to structure their remuneration packages. EBTs may still be useful for both employers and employees alike, but care is needed, particularly with the ‘earmarking’ charge. The exempting Regulations for offshore pensions were not as broad as perhaps anticipated. Uncertainties over the definition of ordinary residence may make it difficult to split an employee’s earnings into taxable and non-taxable parts. Other alternatives include converting EBTs into EFRBS, dual contracts for non-dom clients and LLP arrangements.
