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HMRC internal manual

Inheritance Tax Manual

Special trusts: employee trusts and newspaper trusts

Charging provisions: IHTM04100

Chargeable events are liable to inheritance tax at the flat rate. (IHTM42802)

Distributions to the employees or their relatives or dependants are normally exempt.

IHTA84/S87 specifically allows trusts for newspaper publishing companies or newspaper holding companies to receive the same inheritance tax treatment as employee benefit trusts (EBTs).

If you come across an EBT or newspaper trust, refer to TG Edinburgh immediately. There may be particular taxation or avoidance implications.

EBTs provide a complex area of taxation. There is a full separate section of guidance for technicians considering EBTs at the end of this section of the Manual. (IHTM42900)