The background to this is that Premier issued a letter to clients on 28th January 2013 inviting each client to authorise Premier to enter into negotiations with HMRC regarding potential settlements on outstanding employee benefit trust arrangements.
As a result of those negotiations, HMRC is now issuing individual EBT settlement illustrations to each client via Premier Strategies. Unfortunately, these illustrations are being prepared individually which means that it is likely that, based on the rate at which these are being issued, it will probably take HMRC another couple of months to issue illustrations for all clients!
Clients need to understand to the principles behind the revised settlements. There are a number of beneficial changes from previous settlement offers resulting in a reduction in the quantum of the settlement. However, let me be clear, based on what I’ve seen so far, I certainly will not be recommending settlement to any of my clients and will certainly not be taking advantage of the settlement offer for my own company (as we have already extracted ourselves from our EBT!)
Yes, HMRC is tiptoeing in the right direction but it’s a long way short of any commercial settlement. Personally, I cannot see any incentive for clients to settle liabilities now.
Particularly as we offer a bespoke planning service which can extract you from your EBT liabilities on preferential terms (depending on your personal circumstances). So why would anyone want to enter into negotiations when there may be an alternative method that is beneficial for you and your family.
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