If you want to benefit from transitional relief on investment growth from a disguised remuneration scheme you have to register your interest to settle with HMRC by 31 October 2016.
- Transitional relief was introduced alongside the disguised remuneration rules to allow those who have settled with HMRC to obtain relief.
- If transitional relief applies you still have to pay tax on the amount that was invested in the scheme, but can get relief on any investment returns which have accrued.
- Transitional relief will be withdrawn if the original tax on the disguised remuneration has not been settled on or before 31 March 2017.
- If you don’t settle by this date, the disguised remuneration rules will apply to investment returns (whenever accrued) when they are distributed to the employee.
In order to benefit from transitional relief, you need to:
- Register your interest to settle with HMRC by 31 October 2016.
- Send HMRC information to enable them to calculate / check what you owe:
- By 31 October 2016 if you want them to calculate the liability.
- By 31 December 2016 if you are calculating the liability.
- Reach a final agreement with HMRC on or before 31 March 2017.
Links
Our subscriber guide: Disguised remuneration: changes from 2016 onwards
HMRC’s guidance contains more information on registering with HMRC, including lists of the information which needs to be submitted.
