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An Employee Ownership Trust (EOT) offers a fantastic opportunity for business owners to transfer ownership at full market value to be run for the benefit of all employees. These opportunities include:

• An excellent alternative to an MBO or third-party sale, particularly where a willing buyer cannot be easily identified.
• The disposal by the vendors will be completely free of capital gains tax where the necessary conditions are met.
• Offering employees up to £3,600 income tax-free per year.
• Improved employee engagement with research showing increased employee morale, reduced absenteeism, and greater stability.

We have significant experience designing and implementing EOTs, working alongside vendor shareholders to help them transition their business to employee ownership. This includes creating employee share schemes to retain and incentivise key employees.

We also have experience dealing with sales out an EOT. This area of tax advice is relatively new, as EOTs were only introduced in 2014.

As members of the employee ownership association, we have delivered various seminars and webinars on this topic, including speeches at the London Tax Network annual conference, CIOT branch events, MBL seminars, CPD Store, and more. We have also published numerous technical articles in tax journals such as Taxation Magazine, Tax Journal, and Tax Adviser.