The following Employment Tax guidance note Produced by Tolley in association with John Hayward provides comprehensive and up to date tax information covering:
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, or in connection with any change in the nature of the employee’s service
by virtue of a pension sharing order or provision
ITEPA 2003, s 393A(1)
This includes a non-cash benefit.
As unregistered pension schemes, EFRBS are not subject to the pensions taxation regime set out in FA 2004. Thus, contributions to an EFRBS are not subject to the annual allowance and benefits from an EFRBS are not tested against the lifetime allowance. These rules apply equally to funded and unfunded arrangements, as existing FURBS and UURBS became EFRBS with effect from 6 April 2006.
These rules apply to contributions after that date to FURBS established pre 6 April 2006 and to UURBS generally.
The employer establishes the EFRBS
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere
A ‘pilot trust’ is one that holds a nominal amount of property (typically a small sum of cash) and does not become active until further funds are added later. The later addition is sometimes made on the client’s death by a gift in his Will. The use of pilot trusts in conjunction with Wills became a
Universal credit is a non-taxable benefit that is administered by the Department of Work and Pensions (DWP) and is available throughout the UK. It is available to individuals on low incomes whether they are in work, unemployed or self-employed. It is designed as a replacement for several ‘legacy