Employee-Ownership Trusts

<div><b>Since legislation was introduced in 2014, there has been a consistent growth in the number of company sales to employee-ownership trusts (EOTs).&nbsp;</b></div><div><br></div><div>Accountants need to understand the different aspects of establishing a suitable trust, including satisfying the tax requirements to obtain CGT exemption and putting in place suitable corporate governance arrangements to ensure that the vendors are paid in full and that the business continues to prosper as an EOT-owned company.</div><div><br></div><div>This new volume brings together the technical and practical aspects, offering a vital guide for professional advisers in this field.&nbsp;</div><div><br></div><div><b><a href="/David-Pett/" class="" classname="" target="" name="">David Pett</a></b>, is a tax barrister at Temple Tax Chambers in London. Read more&nbsp;<b><i><a href="/David-Pett" class="" classname="" target="" name="">here</a></i></b>.</div><div><br></div><div><b><font color="#009900">"As interest in employee ownership, and specifically in the EOT, continues to grow, there will be a corresponding need to ensure that there is timely and accurate information available for those that wish to consider or advise on the EOT. Therefore, books like this are essential to supporting this."</font></b>&nbsp;– From the foreword by Deb Oxley OBE, former Chief Executive of the Employee Ownership Association</div><div><br></div><h2><font size="6">Contents</font></h2><b><font size="3">Background to EOTs</font></b><blockquote style="margin: 0 0 0 10px; border: none; padding: 0px;"><div><font size="3">Introduction and background</font></div></blockquote><div><div><b><font size="3"><br></font></b></div><div><b><font size="3">The tax incentive for selling to an EOT</font></b></div></div><blockquote style="margin: 0 0 0 10px; border: none; padding: 0px;"><div><font size="3">The relief from CGT</font></div><div><font size="3">Trustees</font></div><div><font size="3">The trust deed and other documentation</font></div><div><font size="3">Balancing the interests: vendors, trustees, management, employees, other shareholders</font></div><div><font size="3">Selling shares to the EOT</font></div><div><font size="3">Funding the trustees</font></div><div><font size="3">Gifts of shares to the trustees</font></div><div><font size="3">An EOT as a discretionary settlement - other IHT issues</font></div></blockquote><div><div><b><font size="3"><br></font></b></div><div><b><font size="3">After the company has been acquired by the EOT</font></b></div></div><blockquote style="margin: 0 0 0 10px; border: none; padding: 0px;"><div><font size="3">Tax-free bonuses for employees</font></div><div><font size="3">Putting shares into the hands of employees</font></div><div><font size="3">Distributing profit to employees</font></div><div><font size="3">Disqualifying events and the consequences</font></div><div><font size="3">Disposals of shares by the EOT trustees</font></div></blockquote><div><div><div><b><font size="3"><br></font></b></div><div><b><font size="3">Looking forward</font></b></div></div></div><blockquote style="margin: 0 0 0 10px; border: none; padding: 0px;"><div><div><font size="3">Encouraging a move to EOT ownership</font></div></div></blockquote>