An Employer Financed Retirement Benefit Schemes (EFRBS) is a pension scheme that is unqualified.
Contributions into EFRBS are tax neutral, between employer and employee.
In recent times they have become increasingly popular with footballers and bank staff. They are routinely offered as part of contract negotiations. The trusts’ funds can be used to buy assets such as property and can for example, be very attractive to foreign players who intend to leave the UK when they finish their football careers.
An EFRBS can be used as part of a tax strategy for owner managed businesses also. However, the Treasury and HMRC has announced that they intend to shut the opportunity, and limit contributions to EFRBS to the same level of contributions that will be permitted to qualifying pension schemes.
For alternative tax planning methods or to talk about EFRBS why not give our Leeds office a call?