The Disguised Remuneration paper and Schedule to the Finance Bill can be found here

Since the Government announced that it was to reduce the Annual Allowance to £50,000 from the tax year 2011/2012, warnings have been given that measures will be introduced to prevent alternative vehicles being used to avoid tax charges. The Finance Bill includes a Schedule dealing with “Employment income through third parties” which is accompanied by a Treasury document called “Disguised Remuneration”. The intention is that an immediate charge to income tax and National Insurance will occur when a third party makes provision for a reward in relation to an individual’s employment. This will apply to actions taken since 9 December 2010.  

One area which will be caught is where a person earmarks a sum of money or asset with a view to it later being paid or transferred to the individual employee. In our opinion this provision is likely to catch funded Employer Finance Retirement Benefit Schemes (EFRBSs) and may also catch unfunded ERRBSs where some form of security is given. In many cases there may no longer be any financial benefit in maintaining the EFRBS structure.