Edition 1st
Published February 2022
Length 300 pages
Suitable for Accountants, Tax Advisers
Price 85
ISBN 9781912386529

Employee-Ownership Trusts


Since legislation was introduced in 2014, there has been a consistent growth in the number of company sales to employee-ownership trusts (EOTs). 

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.

This new volume brings together the technical and practical aspects, offering a vital guide for professional advisers in this field. 

David Pett, is a tax barrister at Temple Tax Chambers in London. Read more here.

"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."  From the foreword by Deb Oxley OBE, former Chief Executive of the Employee Ownership Association


Background to EOTs
Introduction and background

The tax incentive for selling to an EOT
The relief from CGT
The trust deed and other documentation
Balancing the interests: vendors, trustees, management, employees, other shareholders
Selling shares to the EOT
Funding the trustees
Gifts of shares to the trustees
An EOT as a discretionary settlement - other IHT issues

After the company has been acquired by the EOT
Tax-free bonuses for employees
Putting shares into the hands of employees
Distributing profit to employees
Disqualifying events and the consequences
Disposals of shares by the EOT trustees

Looking forward
Encouraging a move to EOT ownership