The next step

http www hmrc gov uk avoidance spotlights htm

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Taxman puts spotlight on pension schemes

Heads up. For the last year or so the Taxman has been issuing occasional bulletins which he calls “Spotlights”. These are intended to flag up avoidance schemes developed by the tax industry that he believes don’t work and that he may challenge in due course.

Pension plans. His latest Spotlight focuses on Employer-Financed Retirement Benefits Schemes (EFURB) (see The next step). These are genuine pension arrangements, but it’s the accelerated timing of Corporation Tax (CT) relief for contributions that’s giving him the jitters. If you have an EFURB, we recommend that you speak to your accountant and the person who set up the scheme to check whether you need to take any action, i.e. pay more CT to avoid interest being charged.

For a link to the Taxman’s website to view the latest Spotlight, visit http://tax.indicator.co.uk (TX 10.08.09).