EOTs – Employee Ownership Trusts – continue to be a popular succession planning option with more than 2,250 businesses across the UK now owned by their employees.

Put simply, EOTs let you transfer control of your business to your staff, helping safeguard their longer-term future. They’re tax efficient too because as long as fairly straightforward conditions are met, then selling the company’s shares to the trust should be free of capital gains tax.

You should be aware though, that EOTs aren’t designed for a quick sale. And there can be other issues such as what happens if the trustees want to sell the business to a third party or if a vendor shareholder would like to stay on as an EOT trustee?

EOTs involve complex tax issues and HMRC clearances plus you’ll need to look at how the business’s purchase is being financed. At Jerroms Miller Specialist Tax, we have wide experience of guiding businesses through the process – ensuring transfer to an EOT works for you and your employees.