Disguised remuneration: where are we now?

What is the background?

The disguised remuneration legislation introduced in FA 2011 was a warning to employers and promoters of tax avoidance schemes that the use of employee trusts and other contrived remuneration structures to avoid defer or reduce income tax liabilities would be strongly challenged.

Publication of the draft legislation was met with extensive criticism in light of its wide ranging nature and its potential for catching innocent arrangements that did not involve tax avoidance. Following a series of amendments to the draft rules Part 7A of ITEPA 2003 was enacted which includes a series of complex exclusions and reliefs for certain types of deferred remuneration and employee benefits arrangements HMRC approved pensions and share plans. Guidance...