Employer Financed Retirement Benefit Schemes (EFRBS)

By Tolley

The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Employer Financed Retirement Benefit Schemes (EFRBS)
  • Introduction
  • EFRBS in the spotlight
  • EFRBS and disguised remuneration


A pension scheme that is not a registered scheme is known as an EFRBS. Since April 6 2006, the distinction between what were approved and unapproved pension schemes has been replaced with a distinction between registered and unregistered schemes.

The position as it applies with effect from 6 April 2006 relates equally to funded and unfunded arrangements. So both Funded Unapproved Retirement Benefit Schemes (FURBS) and Unfunded Unapproved Retirement Benefit Schemes (UURBS) became EFRBS.

The rules for EFRBS are closer to the rules as they previously applied to UURBS than to those associated with what were FURBS.


An EFRBS is defined as a scheme that consists of or includes relevant benefits. ‘Relevant benefits’ are defined by ITEPA 2003, s 393B as meaning any lump sum, gratuity or other benefit provided:

  • on retirement or on death
  • in anticipation of retirement
  • after retirement or death in connection with past service
  • on or in anticipation of,

More on Non-registered pension schemes: