Income Tax – EBT Scheme – discretionary power of appointment – allocation of amounts to sub-trust in respect of directors and families – no appointment of sums by trustees to directors – directors received benefits mainly in form of interest free loans made by trustees: Whether sums contributed to EBT / Sub-trust / payment of loan amounted to earnings subject to PAYE / NICs
Issues: Whether contribution to EBT was redirection of earnings? – No- Whether despite no allegation of Snook sham being made discretionary trust was really a bare trust applying case law approach of Autoclenz v Belcher and Antoniades v Villiers? – No – Whether payment of earnings applying Ramsay approach – yes – appeals dismissed
[2017] UKFTT 589 (TC), [2018] SFTD 123
Bailii
England and Wales
Income Tax
Updated: 17 December 2021; Ref: scu.592619