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The Chartered Institute of Taxation (“CIOT”) made an interesting intervention in a recently published paper called “Employee Ownership Trusts (“EOTs”): Submission on enhancement and anti-abuse measures, funding and other tax issues”.
The CIOT is a charity and its “primary purpose is to promote education in taxation with a key aim of achieving a more efficient and less complex tax system”.
There has been some discussion of whether the submission fits in with that “primary purposes”. However, it is clear that the CIOT makes some firm policy suggestions to the Government in this area.
For an overview of EOTs, then please see our earlier article.
CIOT areas of concern
The CIOT identifies several areas where it suggests the rules could be tweaked:
As a result, the CIOT sets out a number of options addressing these issues. Their preferred options are set out below:
The CIOT’s proposals seem to be unsolicited and they ask for an opportunity to discuss these with HMRC and / or the Government. It is therefore not certain that all or any of the CIOT’s suggestions will result in any changes to the legislation.
If you have any queries about this article, Employee Ownership Trusts or tax matters in general then please get in touch.
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