Employee benefit trusts

• Details
• Tagged entities

Properties

Alt label

• Case law employee trusts
• Employee share trusts

SES ID

• 9918
• 51888
• 52240

Notation

• 9918

In scheme

• Subject

Broader

• Tax avoidance

Scope note

• Use only for EBTs (which have a legal status). Use "Employee ownership" for schemes to give employees shares in the company.

Definition

• Discretionary trusts with offshore trustees for employees who do not need immediate access to their full salary and wish to defer in the form of bonuses and share options. Regarded as a tax loophole by HMRC, these schemes were largely closed down by July 2015.

History note

• Amendments to IN and SN made for PQ meeting on 4 November 2015.