The use and legality of employment benefit trusts: A review of the Rangers FC / Murray Group case

Tax under Magnifying Glass Print publication


This article was written for and first published by LawInSport.  The full article is available to view here.

Over the last twenty years, the use of employment benefit trusts (or EBTs) has increased in popularity. Whilst EBTs can be implemented for any number of legitimate reasons, they have also been exploited as a means to extract cash from companies without the usual income tax charges. As a result, HMRC takes issue with this type of planning and seeks to challenge it wherever possible.

Remuneration planning using EBTs is also the reason why, in 2010, the Government announced a new piece of legislation, known as the disguised remuneration rules, designed to stop this type of planning in its tracks.  Of course, this did not resolve the problem of those schemes that were already in place, some of which are still being litigated.  Indeed, one of the most high profile cases concerns Rangers Football Club, and its development has been keenly watched by both advisers and their clients.

This article reviews the Rangers case, the issues it raises and what impact it might have.  Please click here.