The 100 Years Legacy of Employee Ownership

When Evolution Becomes Revolution: The 100 Years Legacy of Employee Ownership- Article

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…

Employee Ownership Trust (EOT) : Important Changes But Still 0% CGT

Employee Ownership Trusts (EOT) : Important Changes but still at 0% CGT – Article

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…

Budget 24

Autumn Budget Under Pressure- Article

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 …

How the use of external finance can ease the route to employee ownership through an EOT transaction

How External Finance Can Ease the Route to Employee Ownership through an EOT Transaction – Article

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…

What is the purpose of Employee-Owned Business and can it be resold

What is the purpose of an Employee-Owned Business and can they be resold? – Article

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…

Capital Gains Tax could hit 45%

Capital Gains Tax Could Hit a Staggering 45% – Article

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…

Running an Employee-Owned Business

Running an Employee-Owned Business Empowers Success – Article

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…

How Employee Ownership Drives Competitive Advantage

How Employee Ownership Drives Competitive Advantage – Article

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…