Budget 2010: Government to act against employer-financed retirement benefit schemes (EFRBS)

In its March 2010 Budget the former Labour government announced action against arrangements which use trust and other vehicles to avoid, defer or reduce liabilities of employees and directors to income tax and national insurance or to avoid restrictions on pensions tax relief.

The new coalition government has confirmed that EFRBS are within the scope of this measure.

Legislation will take effect from April 2011.

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