Employer Funded Retirement Benefits Scheme ("EFRBS")

Martin Mitchell, Manager of Volaw's Employee Benefits Group, looks at a type of unregistered pension scheme that provides tax benefits for non-UK source income and gains.

Following the introduction of the annual and lifetime caps for UK approved schemes at "A Day" (6 April 2006), the use of unapproved or unregistered retirement benefit schemes has increased considerably. In addition, such unregistered arrangements have significant flexibility which make them very attractive, this attraction having been further enhanced since the announcement of the 50% tax rate (that will apply from April 2010) and the restrictions on tax relief for pension contributions to registered schemes that have already commenced.