Employee Ownership Trusts
An EOT is a trust that enables a company to become owned by its employees and can be set up by a company’s existing owners, perhaps as part of their exit or succession planning strategy, or by founders starting a new business which they wish to be employee-owned.
There are many benefits of Employee Ownership Trusts, these include:
- No need to pay dividends, this means cash can be reinvested in the business and staff.
- Enhanced employee motivation and retention.
- Companies owned by EOTs are also able to pay tax-free cash bonuses to their employees of up to £3,600 per employee, per year.
- Shareholders get a full Capital Gains Tax exemption.
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. This area of tax advice is relatively new, as EOTs were only introduced in 2014.
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.
If you would like more information on Employee Ownership Trusts and what is involved, get in touch with our experts Pete Miller, Nick Wright, Sam Wightman and Adam Lediard.
You can also download our brochure.
Daphne Hemingway
Daphne has more than 27 years experience of specialist VAT litigation and dispute resolution skills.
She has an excellent success rate based on her thorough assessment of the cases. Other accountancy firms also refer their clients for these specialised services. VAT and property transactions are another specialist area for Daphne. A thorough understanding of land law, Daphne advises both property developers and house builders on means of saving VAT on transactions. She also works with law firms and provides bespoke, tailored training.
Jerroms Mortgage & Finance Ltd is registered in England and Wales. Registered number 11459888. Registered Office address as above. Authorised and regulated by the Financial Conduct Authority (reference number: 829252). Mortgages Together, Stratford Corporate Finance and Business Finance Quote are trading names of Jerroms Mortgage & Finance Ltd. VAT No. 326 4715 04.
Jerroms Financial Planning is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 300784. Registered in England and Wales under reference 4710626. Registered office address: Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, West Midlands B90 8AH.
Client Directors of the firm are not directors of Jerroms and are not subject to the obligations and responsibilities of directors within Part 10 of the Companies Act 2006.
Jerroms is a trading style of both Jerroms Business Solutions Limited (08923059) and Jerroms GCN Limited (08433008). Registered Office for each of these Companies is: Lumaneri House, Blythe Gate, Blythe Valley Park, Solihull, West Midlands, B90 8AH. A list of directors is open for inspection at the Registered Office.
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