7 minutes read CGT: 0% Relief on EOT Sales Potentially at Risk The 0% Capital Gains Tax (CGT) relief on sales to Employee Ownership Trusts (EOTs) must be considered at risk in the upcoming October Budget. EOTs Becoming a Significant Share of Business Sales This concern arises because EOTs are the fastest growing option of all…
8 minutes read This article explores the key Employee Ownership Trust pros and cons to help determine whether this model is the right fit for your business. As more business owners seek value driven, legacy-preserving succession strategies, the Employee Ownership Trust (EOT) has emerged as a powerful alternative to traditional trade sales or private equity exits.…
An increasing number of owners are selling their businesses to their employees via an Employee Ownership Trust (“EOT”). When structured correctly, an EOT attracts 0% Capitals Gains Tax, can achieve full commercial value and can typically be completed in a shorter time frame than a traditional third-party business sale. In this video, we look at…
5 minutes read Following the widely anticipated increase in Capital Gains Tax (“CGT”) announced in last month’s budget (24%), our team has already seen a huge surge in enquiries from clients seeking alternative exit structuring options for future business sale transactions of their family firm. Questions around Inheritance Tax (“IHT”) are also growing. Many business owners…
15 minutes read As companies seek ways to adapt to an evolving social and economic landscape, traditional business models of ownership and operation are being re-evaluated. In light of ongoing uncertainty with the new tax regimes, business owners face increasing pressure to future-proof their companies. The Employee Ownership Trust (EOT) has emerged as an attractive option…
4 minutes read Many business owners are now turning to Employee Ownership Trusts (EOTs) as a more attractive exit strategy. Since their introduction in 2014, EOTs have offered appealing tax benefits, including a 0% capital gains tax for owners transferring a controlling stake. This advantage is even more pronounced following yesterday’s budget, which raised Capital Gains…
4 minutes read With the new budget just released, clients are understandably already questioning its impact. Unfortunately, for many, the response is probably one of disappointment or even frustration as overall there is a £40bn hike in taxes, with a significant proportion of funding falling on the shoulders of businesses. Key Budget changes affecting business owners …
5 minutes read Capitalism is facing challenges, and Employee Ownership is part of the solution. Productivity in the West has stagnated and economic growth for most Western economies has slowed due to aging populations and the increased state burden of associated social costs. Additionally, consumerism, a cornerstone of capitalism, is under scrutiny due to its environmental…
5 minutes read Many business owners planning their exit or retirement strategy may be attracted to the idea of transferring ownership to the employees via an EOT. However, for the transaction to take place the EOT needs to have sufficient funds to cover the purchase cost. There are three main routes to funding the Employee Ownership…
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…