Jurisdiction(s):
United Kingdom

Share incentives: EBT rescission; UT says EBT loan not earnings; FCA consults on 2024 UK Corporate Governance Code; Welsh income tax rates unchanged; points on Foreign Income and Gains regime

Published on: 12 December 2024

Published by a LexisNexis Share Incentives expert

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In this issue:

Employee benefit trusts
Budgets, Autumn Statements and Finance Bills
Remuneration issues for financial services firms
Useful Information
Weekly highlights from other practice areas

Employee benefit trusts

JTC Employer Solutions Trustee Ltd (as trustee of the Henderson Family Benefit Trust) Garnett [2024] EWHC 3128 (Ch)

This claim sought rescission of a number of deeds of appointment made under two employee benefit trusts (EBTs). The appointments established sub-trusts for named employees and their families under each trust and, in HMRC’s assessment, caused the appointed assets to fall outside the exemption in section 86 of the Inheritance Tax Act 1984 (Section 86), thereby creating potential inheritance tax exposures. The claimants argued that the appointments were executed on the mistaken assumption that the assets would remain within the Section 86 exemption, and that this error was sufficiently serious to justify setting the deeds aside. HMRC, in correspondence, raised objections that included the prospect of refusing relief on public policy grounds where arrangements are regarded as artificial tax avoidance, together with doubts about the efficacy of the remedy being pursued...

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