The Knowledge Centre

Employee ownership of companies (or employees owning some shares in the company) is becoming increasingly popular. Here we look at some ways in which this can be achieved. Employee Ownership Trust (EOT) By far, the most popular method of transferring ownership of companies is through an EOT. The attraction for the existing shareholders is that […]

So, what is a sale of business to employees or an Employee Ownership sale? In simple terms, it is the sale of company shares to a trust which holds them for the benefit of the company employees, or, in other words, you are simply selling your business to employees. Employee Succession – some options A quick […]

Employee Share Incentivisation In the current climate, the recruitment and retention of staff have become more vital than ever for the growth and long-term success of a business by employee share incentivisation. Whilst the retention and engagement of all staff are critical for the long-term success of a business, most businesses would identify a select […]

Purpose of this article The purpose of this article is to explain: History of the Employee Ownership Trust (“EOT”) The EOT tax reliefs have their origin in a political desire to introduce more diversity into the UK economy by encouraging employee ownership. In 2012, the government commissioned a review of employee ownership (Nuttall Review). Among other suggestions, the Nuttall Review […]

Following legislation introduced in September 2014 (FA 2014, s 290 and Sch 37) to promote employee-owned corporate structures, the concept of an employee ownership trust (EOT) was born. This employee ownership trust model provides entrepreneurs with an alternative exit route and an opportunity for succession planning which involves transferring control of the business for the long-term […]

Employee Ownership Trusts (EOTs); Definitions & Examples… What is an EOT? A Definition by Example New legislation surrounding Employee Ownership Trusts were brought in under Finance Act 2014 with the aim to encourage more companies to adopt an indirect employee ownership model. Indirect employee ownership models aim to incentivize employees by giving them a share […]

The benefits of employee ownership Whilst times of economic uncertainty create business stress and no little anxiety, they arguably also concentrate the mind on the things which help businesses succeed.  It is the sort of thinking which is much needed regardless of wider commercial circumstances but sometimes only becomes an acute priority when firms are […]