Employee Ownership Trusts Solicitors
Employee Ownership Trusts (EOTs) are a mechanism to support wider employee ownership in the UK. Intended as an ‘off the shelf’, relatively simple model to promote employee ownership, an EOT encourages business owners, via generous tax breaks, to sell a controlling stake in their company. The stake is held in Trust on behalf of the company’s employees. The EOT must have the controlling stake – and benefit all employees equally.
For shareholders selling a majority stake, the proceeds are exempt from capital gains tax.
An EOT provides shareholders and management teams the opportunity to conclude a buy out quickly and smoothly, usually involving less risk for the seller, whilst incentivising the employee base by allowing them to enjoy the fruits of future income and capital growth.
Napthens is experienced in advising upon EOT schemes and offer management teams and trustee purchasers a fixed fee proposal to handle the legal aspects of the transaction process.
We are a member of the Employee Ownership Association.
For more information or a detailed discussion about EOTs and their benefits for your business, make an enquiry below.