Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

EBT conundrum arising from Glasgow Rangers

14 November 2017 / Robert Maas
Issue: 4624 / Categories: Comment & Analysis
istock-533666781_fmt

Loan me a dime

In HMRC’s ‘Working with Tax Agents’ blog on 17 August () HMRC stated that the Supreme Court decision in the Glasgow Rangers case stated that any payments made through an employee benefit trust (EBT) should be considered as taxable income as opposed to a loan. This raises an interesting conundrum and I wonder whether any Taxation readers have considered it.

 

The real decision

The decision in the Rangers case (RFC 2012 plc (formerly Rangers Football Club Plc) v Advocate General for Scotland [2017] STC 1556) was not that a loan should be considered as taxable income but rather that if something is earnings it is taxable on the employee even if the recipient of the largesse is a third party.

In this case the evidence was that the money was earnings even before it went into the EBT. HMRC had assessed the company not the EBT to...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon