Resources
View the latest resources and insights.
The truth is, in my experience, an EOT project is seldom about the tax incentive. Yes, it has been a very good tax incentive (and in its changed form it remains so), but the founders that I have worked with, never looked to the tax incentive as the key reason for the decision to take the EOT route.
Considering a sale of your company to an Employee Ownership Trust (EOT)? This decision is about more than price - it’s about balancing affordability, continuity, dividend potential, leadership succession and fairness across employee ownership. We’ll walk through the key factors you should weigh before deciding whether to sell all your shares or retain a stake.
When selling to an EOT, getting the valuation right is crucial. Tax relief hangs on it. In this guidance note we summarise how trustees can satisfy the HM Revenue & Customs “prudent person” test - from commissioning an independent valuation, through director confirmations, to structuring warranties and ensuring business-affordability.
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