Employee Ownership Trusts (EOT)

Employee Ownership Trusts (EOT), what do business owners need to know?



Our team of London tax advisers regularly help and advise clients on Employee Ownership Trusts (EOT).

There are several rules surrounding the use of an Employee Ownership Trusts which were  introduced by the UK Government to encourage more employee-owned businesses.  

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A few facts about Employee Ownership Trusts…

What are the tax benefits of Employee Ownership Trusts?

The sale of shares held in a trading company to a qualifying EOT is tax exempt.  

The sale must be at market value and the intention must be that the EOT is a long-term shareholder. 

How many shares must the EOT hold?

The EOT needs to have more than 50% of the shares.  

Employees can obtain an equity interest in the remaining shares.  


Is it true, Employee Ownership Trusts must benefit all employees?

Yes, the trust must benefit all employees.

An EOT often works best when a shareholders exits the business but is permitted a limited ongoing participation.


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Our team’s approach is to develop long-term relationships with all our clients.  We want our clients to feel valued and free to contact our partners, managers, and indeed all our team at any time. You will never be just a number in a database with us.

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Your engagement partner will ensure regular contact is kept and will help build a good working relationship.  They will get to know you, your business, and the people in it.

By really getting to know you and your business, we can quickly identify your requirements and this enables us to give you professional advice and guidance that is meaningful, and timely, in order to maximise the full potential of your business.

We believe one of the most important factors in considering your selection of an audit, tax or accounting firm, either in London, or the surrounding area, is the people you will be working with.

Employee Ownership Trusts RPGCC London Tax Advisers

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If you would like to arrange to meet a member of our team, on a free, no obligation basis, to discuss how we can help you and your business contact us or telephone us on 020 7870 9050.  Or you can visit our web chat in the bottom right corner which is manned during office hours and you can leave a message out of hours. 

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If you would like to speak to a member of our team about accounting, audit, tax, mergers & acquisitions or independent financial advice you can call us on 020 3697 7147. Or you can visit our web chat in the bottom right corner which is manned during office ours and you can leave a message out of hours. We promise that the RPGCC Tax team are always just a click or call away.
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