Employer-financed retirement benefit schemes (EFRBS) ― overview

Produced by Tolley in association with

Employment Tax

Guidance

Introduction

The Finance Act 2004 introduced EFRBS as the replacement tax framework, with effect from 6 April 2006, for unapproved schemes ― which had colloquially been known by the acronyms FURBS (Funded Unapproved Retirement Benefit Schemes) and UURBS (Unfunded Unapproved Retirement Benefit Schemes) depending on whether they were funded or unfunded.

The rules for EFRBS are closer to the rules as they previously applied to UURBS than to those associated with what were FURBS.

EFRBS

Relevant benefits

An EFRBS is defined as a scheme for the provision of benefits that consists of or includes relevant benefits. Subject to certain excluded benefits, ‘relevant benefits’ are defined by ITEPA 2003, s 393B as any lump sum, gratuity or other benefit (including non-cash benefits) provided:

•
on retirement or on death of an employee or former employee
•
in anticipation of retirement
•
after retirement or death in connection with past service
•
on or in anticipation of, or in connection with any change in the nature of the employee’s service
•
to any person

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David Everett

Partner, Lane Clark & Peacock , Employment Tax

David Everett, is the head of the Pensions Research team at LCP. One of his key roles is to analyse and communicate regulatory and professional developments to audiences both within and outside LCP.David has built up many years of experience in the occupational pensions regulatory field covering a broad spectrum including government policy and legislation, particularly that emanating from the Department for Work and Pensions, the Pensions Regulator, the Pension Protection Fund and other compensation schemes, the Pensions Ombudsman and the Courts and the technical and ethical regulation of actuaries through the Financial Reporting Council and the Institute and Faculty of Actuaries respectively.He also assists the ACA in responding to government consultations.He's the editor of LCP's weekly Pensions Bulletin and undertakes other technical writing for the firm, as well as contributing to TolleyGuidance Employment taxes for the Pensions module.

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