Corporate and M&A

Employee Ownership Trusts (EOT) are becoming an increasingly popular ownership model which can deliver significant benefits to both shareholders and employees.

Employee Ownership businesses are structured with the sale of the business to a Trust. The Trust then operates the business on behalf of the employees.

Since 2014, such sales have been 100% Capital Gains Tax (CGT) free. This is due to the belief that they increase both company productivity and sustainability. As well as closing the gap between shareholders and employees.

According to Avondale, there are now approximately 600 employee-owned businesses in the UK and the number is rapidly growing. We have set out some of the key benefits and risks of EOT’s. As well as dispelling some myths around their complexity and commercial benefits.

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