11.5 minutes read Contemporary management theory claims that the primary aim of a business is to generate profit, and this is linked to maximising shareholder value and returns. However, this view overlooks the interests of a diverse array of stakeholders beyond the shareholders, such as society, employees, and creditors. Ethical and social governance principles advocate…
3 minutes read Capital Gains Tax (CGT) We had cautiously hoped that Capital Gains Tax (CGT) for sellers of businesses would remain untouched following the recent adjustments that significantly reduced Capital Gain Tax annual personal allowances. However, Labour is now advocating an increase in Capital Gains Tax to 45%, specifically targeting private equity executives with the…
There are over 300 companies a year choosing Employee Ownership Trusts (EOTs) as their exit strategy. There are a number of factors which appeal to seller, including 0% Capital Gains Tax, a vendor-led process and the immediacy. But what is it like to run an EOT? Our Chairman, Kevin Uphill, examined life inside an Employee…
8 minutes read In 2022, the UK witnessed a surge in the creation of Employee Ownership Trusts (EOTs), with a record-breaking 332 companies joining the fold. This brought the total number of employee-owned businesses in the country to 1,418 (source: Employee Ownership Association). This trend can be attributed to various factors, including succession planning needs, the…
7 minutes read Achieving competitive advantage in business is synonymous with outperforming competitors. This advantageous position is founded on four key pillars: efficiency, quality, innovation, and customer responsiveness. By excelling in these areas, a company differentiates its offerings, delivers enhanced value to customers, and potentially operates at a lower cost base, thereby increasing market share and…
9 minutes read A sale of your business to all the employees via an Employee Ownership Trust (EOT) is a relatively simple, advisor and vendor-driven exit strategy and therefore more immediate than a trade sale. What’s more, to encourage such sales, they are currently subject to 0% Capital Gains Tax, provided they meet the qualifying rules.…
In our live panel discussion on Employee Ownership Trusts (EOT) featuring Kevin Uphill (Chairman of Avondale), Mike Dinnell (Director of Business Development at Thincats), and Fran Lord (Head of Communications and Policy at Employee Ownership Association), we explored the competitive advantages of Employee Ownership Trusts (EOT), typical structures, valuations, pros and cons and funding options.…
4.5 minutes read Employee Ownership Trusts (EOTs) have become quite popular among business owners to sell their businesses. In the UK alone, there are now over 1,300 EOTs, and they received more than 400 applications last year. While the 0% tax break on Capital Gains is a significant advantage, there are other reasons why Employee…
4 minutes read EOT – Employee Ownership Trust Employee Ownership Trusts (“EOTs”) are becoming an increasingly popular way for business owners to transfer ownership of their companies to their employees. The UK Government introduced several tax incentives for EOTs in 2014, including a 0% Capital Gains Tax (“CGT”) rate on the sale of shares to an…
3 minutes read Mergers and acquisitions (“M&A”) are increasingly common however, the increasing frequency of M&A deals has raised concerns regarding the tax implications. There is a growing debate about whether Capital Gains Tax (“CGT”) rates should be increased for M&A transactions. Proponents of the increase argue that higher CGT rates will generate more revenue for…