Employee Benefit Trusts located in well regulated, tax neutral jurisdictions such as the Isle of Man continue to be used by many companies as part of their remuneration package for employees.

For many years now Abacus have administered this type of trust which typically holds shares, cash or other assets pending an award to the employees. The trust can in turn form a wholly owned company to invest in UK assets and minimise UK tax from the soon to be introduced headline rate of 50%, to rates at or below 20%. The trust continues to act as a Capital Gains Tax shelter with any asset disposals, including UK assets, being outside of a charge to UK Capital Gains Tax.

For more information please contact: garry.crossan@abacusiom.com