The new legislation on 'Disguised Remuneration' and what it means for offshore trustees

On 9 December 2010, the UK Government released new draft legislation aimed at tackling arrangements involving trusts and other vehicles to avoid, reduce or defer liabilities to income tax on rewards of an employment or to avoid restrictions on pensions tax relief.
The draft legislation was subject to a consultation period which closed on 9 February and the new legislation will take effect from 6 April 2011. There are also anti-forestalling measures in effect from 9 December 2010.
On 21 February 2011, HMRC published a list of Frequently Asked Questions (FAQs) following comments received during the consultation period.

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