Those seeking a scheme without investment restrictions should
consider an EFRBS (Employer Funded Retirement Benefit Scheme). The
scheme is not an employee benefit trust and is not restricted under
pension rules on maximum fund size. Its main purpose is to provide
death or retirement benefits for executives, employees and their
dependants and there are also tax savings which can be made.
An EFRB is a company-backed system for the benefit of directors
and employees, including family members as beneficiaries under the
Trust. It can be used by trading and actively managed investment
companies.
Investments can be made in a broad range, including stocks,
property, shares and loans (even to members of the family). It can
invest in a loan to the employer company.
EFRBS are able to invest in fixed interest investments,
equities, unit trusts, cash deposits and residential property. They
can lend, borrow and invest in unquoted companies. For more details
of this innovative option, contact a Sydney Charles adviser.
Andrew Metcalf
Director, Financial Services
"The amount of flexibility available under an Employer Funded Retirement Benefits Scheme makes them extremely appealing. They are a highly tax efficient way to make the most of the value of private pensions, or those of employees."
Phone Andrew on+44(0) 1481 739970
Email Andrew