Employee Benefits

Employee Benefit Trusts (EBTs) have been established for a number of years by employers as a vehicle to reward, motivate and incentivise employees.  The benefits provided may be a share of profits, shares in the employer company, loans, cash distributions and other employee incentives.

There are a number of advantages to the use of an EBT

• The operation of employee share plans including Joint Share Ownership Plans (JSOPS)
• An EBT can act as a market maker for the sale and purchase of shares in the employer company
• Share warehousing
• Capital gains fall outside of the UK
• Corporation tax deductions are achievable provided benefits have been granted to trigger a chargeable event
• The rolling up of income in a low tax environment
• Potentially outside of the inheritance tax regime
• Ability to provide interest free or low interest loans

It is essential for all interested parties to consult professional advisors on all tax and legal matters in connection with the establishment of such an arrangement.  We would be delighted to make introductions to professionals familiar with the establishment of employee incentive arrangements to assist and provide the necessary professional tax and legal support.