Solutions

An EBT is a vehicle commonly used to administer employee share plans.  Shares are transferred to the EBT for future allocation to employees under a particular scheme. 

The shares are ring-fenced within the trust which is managed by Verfides professional trustees who are fully independent and accountable.  These factors enhance the integrity of the scheme.  The EBT also provides an internal market for private company shares and may, for instance, purchase shares from employees leaving the company.  This also prevents shareholder dilution. 

Verfides has many years experience in implementing and administering EBTs through the provision of professional trustee and administrative services. 

Although the Government has indicated that it wishes to legislate against tax avoidance using EBTs, we anticipate this will apply only to aggressive cash-based schemes that seek to defer tax on what is essentially cash employment income.