Market leading insight for tax experts
View online issue

Renewed warning on disguised remuneration schemes

printer Mail

HMRC has added ‘Spotlight 41’ to its targeted list of tax avoidance schemes, concerning the Supreme Court decision in RFC 2012 plc (in liquidation) (formerly Rangers Football Club plc) v Advocate General for Scotland [2017] STC 1556, involving employee benefit trusts. In particular, HMRC says it will regard the principle set out in the decision, that employment income paid from an employer to a third party is generally taxable as employment income on the employee, as applicable to a wide range of disguised remuneration schemes. This will include:

  • employee benefit trusts, including variants within these schemes where no loans are made from the EBT but instead the funds remain in, or are invested by, the trust;
  • disguised remuneration routed through employer-funded retirement benefit trusts; and
  • a range of contractor loans schemes.