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Alistair Cunningham
UHY Hacker Young reported this week that HMRCs threatening letters to beneficiaries of Employee Benefit Trusts (EBTs) are “hot air”. Whilst we have an element of sympathy for those receiving the letters, and note UHY Hacker Young’s advice not to settle, HMRCs stance should serve as a warning to those seeking to be overly aggressive with their Tax Planning.
Recent legislation, in particular Disclosure of tax avoidance schemes (DOTAS), shows a clear intent by HMRC to clamp down on aggressive schemes. We are by nature cautious, and seek to avoid alternatives to current ‘fad’ planning strategies, for example the use of Qualifying Recognised Overseas Pension Schemes (QROPS) to avoid Inheritance Tax (IHT).
