Employee ownership trusts.
Advice on employee ownership trusts and a wide range of other employee benefits and trusts.
Employee trusts can maximise benefits and incentives.
We have wide experience in advising corporate clients on the creation of Employee Benefit Trusts and Employee Ownership Trusts.
Employee Ownership Trusts survived, with some modifications, the October 2024 budget to provide an opportunity for exiting shareholders to:
• incentive their employees (including by way of bonus payments free of income tax)
• preserve their legacy and at the same time
• benefit from relief from capital gains and inheritance tax
We work closely with our client and their tax advisers to design and implement both types of trust. Contact a member of the team below to discuss how we can help.
The sale process for a sale to an EOT is very similar to the process for the sale to an independent third party. The share sale agreement is the key transactional agreement, the provisions for corporate approval are the same and the transfer will be subject to stamp duty in the normal way. A key difference, other than the opportunity to engage and reward staff is that, subject to receipt of applicable tax clearances, it can often be completed in a much shorter timeframe.
Recent experience
Advising architectural practice based in the South West on incorporation of trustee company and creation of an employee ownership trust to hold 100% of the shares in the trading entity.
Advising Bristol based engineering consultants on creation of an employee ownership trust and the transfer of 100% of the share capital in the trading company to the trustees of the trust.
Advising design, fabrication and installation business with shareholders based in the UK and overseas on the creation of an employee ownership trust. We worked closely with the client and their tax advisers to design and implement the scheme and complete the transfer of shares within seven weeks of first instructions.
Advising a logistics and fulfilment company in the South East on the creation of an employee ownership trust and the sale of 100% of the shares in the trading company to the EOT.
Advising an existing employee ownership trust owned company on the potential exit of the company from the EOT.
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