Employee Ownership Trusts Webinar

Share Incentives, Human Capital Advisory

Employee trusts have been used by employers for a number of purposes to benefit their employees. Such trusts (employee benefit trusts being one example) have been around for a number of years. The UK tax legislation has always given employee trusts tax advantages where they are implemented to genuinely benefit a company’s wider employee base.

Employee Ownership Trusts (EOT) were introduced in April 2014 to make it easier for business owners to pass their companies to their employees.

Who might be interested in an EOT?

Any owners of owner managed businesses who are at a stage where they’re thinking of selling their business and they would like their employees to take the business forward. This will also be of interest to business owners who want to realise some of their capital value from their company with a sale into their EOT. It will be of interest too to owners of owner managed businesses who are looking to sell but who want to protect for example their family business by avoiding a sale to a large multinational conglomerate. Because of the nature of their businesses, we think this might be of most interest to knowledge-based companies where the pyramid structure between employees, management and owners is fairly flat. Such businesses as architects, those in advertising, design, publishing, fashion or music, quantity surveyors, management consultancies, healthcare companies, engineering companies, we think will be particularly interested. But no company should rule it out as a means of exiting their business and passing the business to employees. We know of printing companies that have used it, construction companies, manufacturing companies and retail companies.

What we will cover:

  • Broad understanding of how an EOT works
  • Potential structures for an EOT and the associated benefits
  • The tax advantages of implementing an EOT

Watch our Employee Ownership Trusts Webinar

Our Speaker

Chris Blundell - Partner

Chris has almost 30 years’ experience in the field of tax advice having joined what was then the Inland Revenue from Manchester University via BT. Since then in his time at both KPMG and EY, he has worked with businesses large and small, listed and private, UK-based and international.

He has worked with companies and organisations in all sectors: large insurance companies, international technology companies, regional engineering companies and hotel companies to name a few. He works with companies large and small on all tax and financial matters that affect such companies at different stages of their growth cycle. He advises his clients on all manner of UK and overseas taxes that affect them and their employees through their employment of staff, both senior and junior. He particularly specialises in advising clients on employee equity incentive plans and all matters to do with awarding shares to employees and the tax impacts of this for the business owners.

Share Incentives, Human Capital Advisory