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…
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.…