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Employee Ownership Trust

Protect your staff’s future

As a business owner are you looking for a tax-efficient method to pass your business on?

You can pass your company to key management and employees tax-efficiently through an Employee Ownership Trust (EOT).

What is an Employee Ownership Trust?

An EOT is a path for a company to take when it is looking to transfer the ownership of the company to the employees and wider workforce, this is done via a trust. The process will end in the company having a controlling stake owned by the employees and means that legally this must benefit all employees on an equal basis.

Here to Help

Our expert Employee Ownership Trust team are here to guide you through the process as smoothly as possible.

Call us on 01384 376 964

The most famous example of an EOT is the John Lewis Partnership where all employees are owners of the company. This can be done to avoid a takeover of the company leading to staff redundancies. In essence an EOT is a way to protect your staff’s future.

There is no restriction to what type of company or who can do this so this can benefit any company and company’s employees.

Having an EOT can be a good way to have a succession plan for your business – many company owners are unsure of what they will do in the future and EOT can give you guidance and a plan.

You can use an EOT to see your company grow after you decide you have had enough – by giving the employees the ownership of the company it will build enthusiasm and drive off expertise they already have in the industry to help the business grow.

Not-for-profit businesses – most commonly, if you own a business of this nature, as there is no profit, there is no need for one person to be in control. By inviting employees to participate in ownership, it draws on knowledge and help of willing and like-minded people.

  • Must be a trading company.
  • The EOT must have a majority control.
  • Current shareholders cannot make up 40% of new owners. After EOT Profit must be split evenly once the EOT is complete.

Meet our Specialist Employee Share Scheme Team

Nigel Meredith FCA RI
Senior Partner
Matthew Morris FCCA CTA
Tax Partner
John Hegney FCCA RI
Audit Partner
Jack Meredith ACA
Chartered Accountant

Please contact our team on 01384 376 964 to find out more.