Corporation tax relief on company contributions to a Funded Unapproved Retirement Benefit Scheme (usually for identified senior employees) will cease with effect from 1 April 2006.

There has been significant media coverage regarding the Inland Revenue’s seemingly continual attack on EBTs in recent months. Following the outcome of the Dextra/Caudwell case in July 2002 (in which the Revenue lost on all 4 counts), new legislation effecting the tax treatment of contributions to an EBT was introduced in the Pre-Budget Statement (November 2002)