Advisors to owner managed businesses are only too aware that, at some point, their clients are likely to retire and will want to pass the business on. One of the more interesting options over recent years has been a sale to an employee ownership trust (EOT). The generous tax relief, whereby the seller does not pay any capital gains tax on the proceeds, is designed to encourage selling businesses into employee ownership. Employees obviously appreciate the ability to share in the success of the business, so in many ways it's a win win situation!
In this course Pete Miller & Nick Wright cover the following topics;
- Why sell to an EOT?
- The relief requirements
- Disqualifying events
- Selling shares out of an EOT
- Future changes?
- Employee incentivisation for companies owned by EOTs.
Pete has worked in tax for over 33 years, including nearly 10 years as an Inspector of Taxes. He worked in Birmingham and London with roles in both Policy and Technical Divisions, where he was the Inland Revenue’s expert on all matters relating to the distributions legislation. He then worked for 11 years in ‘Big 4’ firms, specialising in the taxation of corporate transactions.
Pete speaks and writes regularly on tax issues and is lead author of Taxation of Company Reorganisations (Bloomsbury Professional, 6th Edition October 2020).
With Pete and the team, he provides specialist corporate tax advice in areas such as transactions tax, company reconstructions and Employee Ownership Trusts, Employment Related Securities and employee share schemes both to individuals and to accountants and solicitors requiring support for their own clients.
Nick particularly enjoys finding solutions to planning projects in often very technical/complex taxation areas, as well as supporting clients to achieve the optimum solution to their business tax issue, whether that relates to selling their business, demerging, or rewarding employees.