Inheritance Tax and Employee Benefit Trusts (HMRC Brief 49/09)

August 21st 2009

Last week HMRC issued its current view of the Inheritance Tax position in relation to contributions to an Employee Benefit Trust.  The note (HMRC Brief 49/09) confirms the approach they have taken for some time which is that HMRC contend that payments by a close company may bring about a lifetime IHT charge on the participators.

The brief can be accessed at

http://www.hmrc.gov.uk/briefs/inheritance-tax/brief4909.htm

We do not share HMRC’s views on this and believe that HMRC would not be successful in their arguments on this matter.

For a more detailed discussion on this and on other tax planning advice please contact Paul Merrell on 0115 983 5580 or email pmerrell@edftax.co.uk