Employee-Ownership Trusts

This volume brings together the tax technical and practical aspects of establishing an EOT, offering a vital guide for professional advisers in this field.

This book is now available in digital format only, with frequent updates and links to legislation, case law and HMRC guidance.

All subscriptions are for a minimum period of one year.

Access this book immediately

• For this book only, click on Subscribe above – monthly direct debit of £12.
• Subscribe to our Complete Tax Library (all our digital content – around 30 titles) – monthly direct debit of £99.

Other subscription options

• Subscribe to our Core Tax Library (eight books of your choice) – monthly direct debit of £65. Email us your choice of eight books.
• Subscribe to our Specialist Tax Library (five books of your choice) – monthly direct debit of £42. Email us your choice of five books.
• Email us with contact details to ask about multi-user access to some or all of our content.

About this work

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.

“Resources like this book […] are essential in equipping businesses with evidence, knowledge, tools and skills to navigate employee-ownership journeys with confidence”

– From the foreword by James de le Vingne, Chief Executive of the Employee Ownership Association

Table of contents

• • Introduction to EOTs

• • Transferring to an EOT – the CGT relief

• • The trustees

• • The trust deed and other documentation

• • Balancing the interests of the parties

• • Selling the shares to the EOT

• • Funding the trustees

• • Gift of shares to an EOT

• • EOT as a discretionary trust – other IHT issues

• • Tax-free bonuses for employees [expanded by way of example]
    • Qualifying bonus payments
    • Qualifying conditions
    • The participator requirement
    • The equality requirement [expanded by way of example]
      • Introduction
      • Determining factors
      • No opt-outs
      • Former employees
      • Constraints
      • Salary banding
      • Remuneration
      • Length of service
      • Hours worked
      • Seeking certainty
      • Timing
    • Other requirements
    • Not a service company
    • • Other considerations

• • Putting shares into the hands of employees

• • Distributing profit to employees

• • Disqualifying events and consequences for the trustees

• • Disposals of shares by the EOT trustees

• • Looking forward

• • Appendix – useful links

If you prefer a hard copy, please email us at orders@claritaxbooks.com. However, please note only the digital version is now being updated.