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IAN MASTON asks whether payments into an employee benefit trust are gifts
KEY POINTS
- Potential inheritance tax on the creation of an EBT.
- Participators with more than 5% interest can benefit.
- What happens if inheritance tax is overpaid?
- Does IHTA 1984 s 10 provide an exemption?
- Availability of business property relief.
HMRC’s current view on the inheritance tax position when contributions are made to an employee benefit trust (EBT) was set out in Revenue and Customs Brief 49/09 published on 11 August 2009.
This article explains the background to the main points made and offers a different view. All statutory references are to IHTA 1984 unless otherwise stated.
What is an EBT?
An EBT is given privileged inheritance tax status in that it is not subject to the normal periodic charge regime.
This however is not the subject of Brief 49/09; it...
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