Wealth and Succession Planning

Employee Ownership Trusts (EOTs)

Employee Ownership Trusts offer a dual advantage: they incentivize staff and preserve the option for future company ownership. By transferring ownership to employees through an EOT, business owners can achieve several objectives:

• Staff motivation: Employees who have a stake in the company are generally more motivated and committed to its success
• Tax efficiency: There are substantial tax advantages, including potential capital gains tax relief when the business is sold to an EOT
• Succession flexibility: This structure allows for a smooth transition of ownership, while also keeping the option open for family members to assume control in the future

This option can be utilised alongside the passing of interests on to family members and is not exclusively focussed on those business owners who intend to work towards management buyouts.