Monetary advisers with purchasers who’ve been pursued by HMRC over inheritance tax liabilities in relation to Worker Profit Belief (EBT) scheme have been invited to affix a gaggle motion tribunal attraction in opposition to the taxman.

The group motion is being led by Manchester tax consultancy Forbes Dawson.

To date, the group motion represents purchasers with over half 1,000,000 kilos of tax at stake.

HMRC has seen EBTs as tax avoidance schemes and has imposed inheritance tax expenses in respect of these trusts.

When HMRC points a dedication for inheritance tax an attraction have to be lodged inside 30 days.

Laura Hutchinson, managing associate at Forbes Dawson, has urged advisers with purchasers dealing with an EBT-related inheritance tax invoice to get in contact ASAP.

She stated: “EBTs have been the topic of a longstanding authorized problem caused by HMRC as a result of they’re seen as avoidance schemes. 

“Usually, they have been utilized by firms as a means of extracting remuneration to key personnel by way of a contribution into an EBT, adopted by a mortgage to the person.  The argument was that the mortgage was not taxable as a result of it was doubtlessly repayable.

“HMRC was profitable in defeating many of those schemes within the courts – most notably within the case of Glasgow Rangers – with the end result that the monies have been handled as employment revenue and taxed accordingly. Consequently, many scheme customers have chosen to settle with HMRC.

“Nevertheless, HMRC has subsequently gone on to impose additional Inheritance Tax expenses in respect of the usage of trusts. We’ve gathered these affected as a gaggle motion courtroom attraction.”

Advisers and purchasers are invited to contact us if they’re concerned in such a case and are eager about becoming a member of our group motion, which is more likely to be cheaper than interesting by themselves.

“Nevertheless, it’s crucial the preliminary 30-day deadline is complied with.”

The authorized case is being dealt with by tax barrister Ximena Montes Manzano of Temple Tax Chambers.

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