Practical Examples of how recent legislative & regulatory changes are affecting EBT trustees Heidi Wilson Friday, 11 July 2008

Introduction Significant levels of change from both regulatory and legislative perspectives Awareness, planning, implementation & ongoing application Practical examples from a working business Set up & take on, the life of the EBT and underlying plans, vesting of options or awards The trust company itself

Set up & take on Customer due diligence procedures Terrorist financing & anti-corruption legislation Data Protection US Jobs Creation Act update Dividend waivers & the listing rules ABI Responsible Investment Disclosures

Day to day administration… Internationally mobile expatriates Director’s disclosures Execution of deeds by companies New HMRC forms for companies’ annual share scheme reports Trust & Estate Tax returns for non-resident trusts

…during the life of the plan… Leaver rate National Insurance – weekly upper earnings limit Stamp Duty Change of control – level of awards vesting Employee Benefit trust loans

…through to vesting of awards or options EMI changes Capital Gains Tax – new 18% flat rate & abolition of taper relief Entrepreneur’s relief Two client company examples

Company A An EMI scheme implementation Options vesting Spring 2008 Creation of an EBT to facilitate sale of shares Agreement of a share valuation Stamp Duty considerations New CGT rate applies now

Company B A share purchase plan A private company Forfeiture restrictions apply Bad leavers Now CGT rate changes apply An option plan for the future

The business itself Residence and domicile tax reforms – day counting GST Financial resource requirements & the ANLA calculation Professional Indemnity Insurance FSA – Treating Customers Fairly

Thank you for listening Heidi Wilson Head of Offshore HBOS Employee Equity Solutions T: +44 (0) M: +44 (0) Contact details