As a recent example, it was
suggested to us that HMRC may look to alter the settlement terms of the EBT Protector planning. We don’t yet have details of the proposed changes, but would envisage that any change introduced will be to the financial detriment of the company seeking to settle. We’ll keep you informed as we learn more.
In terms of how we can help, whether your client is planning to sell their business, retire or pursue different commercial interests, they need to know that HMRC’s approach to the settlement of tax planning arrangements is continually evolving.
We’ve recently managed an EBT settlement case which resulted in our client being owed money by HMRC rather than the other way round.
HMRC initially issued a settlement figure of over £700,000. We were engaged to manage the settlement process and challenged the initial settlement computation from HMRC and discovered several significant errors:
- Basic details relating to the EBTs were incorrect
- IHT charges were incorrectly calculated
- The Corporation Tax adjustment was incorrect
- The Benefit in Kind set off wasn’t high enough
- The final settlement paperwork contained various drafting errors.
- If you’d like to read more about this particular case take a look at our website.
If you or your clients find yourself in this situation we strongly advise that you talk to us before approaching HMRC to resolve this matter.
In our experience the calculations prepared by HMRC for your clients are unlikely to be the most advantageous final settlement figure for your clients.
If you’d like to have an initial conversation about any of your clients that fall into this category do get in touch with us today, we strongly suggest it’s best not to delay. Read more about our work with clients who want to settle EBTs here.
