Deferral of retirement benefits

Mike Bonner-Davies and Seamus Murphy consider some potential inheritance tax implications for FURBS and EFRBS following the Parry case

Funded unapproved retirement benefit schemes (FURBS) and funded employer-financed retirement benefit schemes (EFRBS) are unapproved pension schemes that were funded with employer contributions. Generally speaking, FURBS were funded prior to 6 April 2006 and EFRBS thereafter. 

Both tend to be trust-based arrangements where the trust deed sets out the powers and obligations of the trustees and the plan rules set out the members’ entitlement to benefits, the precise terms of which will be relevant to the ultimate inheritance tax position.