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Innovative and impartial international tax planning, company, trust and pensions services in Gibraltar for private clients, their businesses and their families.
Employer-Funded Retirement Benefit Scheme (EFRBS)
The STM Fidecs' EFRBS or Employer Funded Retirement Benefits Scheme (often referred to as EFRB, EFURB or EFURBS) team provide expertise to companies and individuals looking for the most tax-efficient way to maximise the value of their private pensions, or those of their employees.
What is an EFRBS?
As the name suggests, The STM Employer-Funded Retirement Benefits Scheme (STM EFRBS) is an employer-sponsored, flexible retirement benefit arrangement which is permitted under UK tax law.
The STM Fidecs EFRBS is suitable for both incorporated and unincorporated businesses.
It allows employers to provide retirement benefits to their employees or former employees, and can be invested in any class of asset such as equities and gilts, residential property and works of art.
Why choose an EFRBS?
Approved pension funds represent an efficient and valuable part of the retirement planning process.
There are, however, limits to the level of annual contributions, and the overall value of the fund.
In addition, there are restrictions to tax relief on pension contributions for higher earners.
These factors are why EFRBS are increasing in popularity.
EFRBS are unapproved but they offer a simple and tax efficient retirement benefits schemes under which an employer can assist their directors and employees in saving for the future alongside, or in addition to, an approved pension scheme.
The Advantages
- EFRBS are portable and suitable for the internationally mobile employee
- There are no maximum contributions and no maximum fund value.
- Regular and one-off contributions can be made.
- Investment flexibility - an EFRBS can be invested in a wide range of assets.
- Income tax is deferred until the income is drawn, with the possibility of this being nil, depending on the tax status of the individual at that time.
- The whole fund can be taken as cash.
- Employer contributions do not attract income tax or NIC liabilities for the members, so minimising tax liabilities on remaining income received.
- No Inheritance Tax (IHT) on death.
Read more on our STM Fidecs EFRBS microsite.
