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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Employee Benefit Trust (EBT) Settlement Opportunity - Update

The above update provides an overview of developments since April 2011 and a range of Frequently Asked Questions (FAQ) to help explain more fully to those affected how their liabilities will be calculated.

By way of reminder, the EBT Settlement Opportunity is intended to encourage employers and companies who had used EBTs and similar structures to settle early any outstanding tax and NICs without the need for HMRC to consider litigation.

Following the launch of the Settlement Opportunity the ‘disguised remuneration’ legislation was enacted in July 2011 and applies to EBTs from 6 April 2011 onwards (with certain transactions also being brought within the new legislation if they were carried out between 9 December 2010 and 5 April 2011 inclusive).

Regulations also came into force on 6 December 2011 to charge Class 1 NICs on amounts chargeable to tax under the disguised remuneration measure.

The principle behind the Settlement Opportunity is that HMRC will seek to settle outstanding enquiries on the basis that payments and allocations made to individuals out of EBTs prior to 6 April 2011 will be treated as earnings from an employment and the income taxed once and for all on that basis.

It is also confirmed that depending on the way in which any individual schemes may have been set up and implemented, to achieve clarity and closure in respect of the use of EBTs prior to 6 April 2011, any such settlements might also encompass:

The update provides an overview of developments since April 2011, and provides answers to a range of FAQ.

HMRC has now set up an operational team to manage the settlement of cases. The main focus of this team is the settlement of cases through engagement with taxpayers and their agents. Settlement terms will depend on the facts of the EBT arrangement but the framework in these FAQs will be applied consistently across all EBTs. HMRC are clear that the FAQs set out the only settlement approach HMRC will be taking in these cases and there is no alternative approach.