Saving tax for clients has always been a major objective for many accountants and other trusted advisors. And, for many years, accountants and other advisors introduced their clients to a tax scheme promoter who sold various structures both offshore and onshore.
Exiting Remuneration Trusts raise a number of issues that need to be addressed. Finding a tax solution (particularly one that is acceptable!) may have become easier for some with HMRC’s new Settlement Terms recently announced.
There is no doubt that tax avoidance evolved over the years. I first came across tax schemes in the 1990’s when there were more “simple” schemes such as investments in platinum sponge and alike. Then they progressed to Employee Benefit Trusts and Remuneration Trusts through which owners of businesses were given interest free loans
The tax avoidance market has changed quite prodigiously in more recent times. Some of these schemes go back to the mid 1990’s and yet they may still be in dispute with HMRC. All of these tax avoidance schemes set out to reward key employees with little (tax) cost often by way of loans.