First-tier tribunal rules against restricted securities scheme to avoid income tax and NICs on bonuses | Practical Law

First-tier tribunal rules against restricted securities scheme to avoid income tax and NICs on bonuses | Practical Law

In UBS AG v HMRC [2010] UKFTT 366 (TC) the First-tier Tribunal held that a scheme to pay tax-free bonuses in the form of restricted shares failed because the shares were not restricted securities for tax purposes. More importantly, if the shares had qualified as restricted securities, the tribunal would have applied a purposive construction of the statute, following anti-avoidance case law, and looked through the details of the scheme to tax the underlying bonuses.

First-tier tribunal rules against restricted securities scheme to avoid income tax and NICs on bonuses

Practical Law UK Legal Update Case Report 2-503-5102 (Approx. 7 pages)

First-tier tribunal rules against restricted securities scheme to avoid income tax and NICs on bonuses

by PLC Share Schemes & Incentives
Published on 05 Oct 2010 • United Kingdom
In UBS AG v HMRC [2010] UKFTT 366 (TC) the First-tier Tribunal held that a scheme to pay tax-free bonuses in the form of restricted shares failed because the shares were not restricted securities for tax purposes. More importantly, if the shares had qualified as restricted securities, the tribunal would have applied a purposive construction of the statute, following anti-avoidance case law, and looked through the details of the scheme to tax the underlying bonuses.