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British Energy Case Study
Car Benefit Solutions (CBS) is one of the UK’s leading providers of automotive benefits consultancy, specialising in the development and implementation of structured company car alternatives. The CBS product suite includes financial modelling, technical advice, policy development, Inland Revenue compliance, project management and Health Checks.
British Energy plc (BE) asked CBS to review an existing employee Car Ownership Scheme (COS) and replicate the
technical structure in an off balance sheet environment. Understanding the schemes risks and value creating
potential was critical to the success of the review. This gave rise to two substantial challenges. The first challenge was to design a finance package that could replicate the significant tax advantages enjoyed by employees and employer without generating a benefit in kind tax charge. The second challenge was to raise the finance required, in a manner that did not breach any of the restrictions imposed by the client. The project took place against a background of BE undergoing a significant restructuring plan.
Car Benefit Solutions (CBS) is one of the UK’s leading providers of automotive benefits consultancy, specialising in the development and implementation of structured company car alternatives. The CBS product suite includes financial modelling, technical advice, policy development, Inland Revenue compliance, project management and Health Checks.
British Energy plc (BE) asked CBS to review an existing employee Car Ownership Scheme (COS) and replicate the
technical structure in an off balance sheet environment. Understanding the schemes risks and value creating
potential was critical to the success of the review. This gave rise to two substantial challenges. The first challenge was to design a finance package that could replicate the significant tax advantages enjoyed by employees and employer without generating a benefit in kind tax charge. The second challenge was to raise the finance required, in a manner that did not breach any of the restrictions imposed by the client. The project took place against a background of BE undergoing a significant restructuring plan.
Project Objectives
- Restructure the COS to ensure off
balance
sheet compliance - Introduce new structures to ease
administration
and tax advantage of tax efficiencies - Select appropriate funding partner.
Implement
new scheme administration - Ensure employee benefit not diminished
- Ensure Inland Revenue and legal compliance
- Develop and implement technical structure to
ensure off balance sheet compliance - Manage Inland Revenue clearance process including drafting all tax clearance documentation
- Develop and implement legal documentation
- Negotiate with funding and service providers
- Set up new scheme administration process and manage transition from previous provider
Client Benefits
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- Developed a sustainable, robust scheme that met objectives and delivered cost savings
- Protection of employee benefits
- Safeguarded assets
- Access to team that delivered a
consistently high
level of service.
Did CBS add value?
"CBS's unsurpassed technical expertise and innovation coupled with a comprehensive supporting infrastructure
capable of handling our diverse requirements made them our supplier of choice."
Alastair Russell,
Head of Taxation,
British Energy plc
"CBS's unsurpassed technical expertise and innovation coupled with a comprehensive supporting infrastructure
capable of handling our diverse requirements made them our supplier of choice."
Alastair Russell,
Head of Taxation,
British Energy plc
Click here to download a pdf of this case study.
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