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Employee Ownership Trusts - Tax Aspects and Other Issues

Corporate Tax Courses

Book the Employee Ownership Trusts and learn detailed technical guidance on a tax-efficient way to exit a company that the owner has set up.

CPD Accredited 3 hours
Duration
1 Day
Format
Multiple

Key Benefits

  • Understand when employee ownership trusts are suitable, how to structure them, and apply qualifying conditions and implementation steps in practice
  • Learn about the tax advantages, financing, and stakeholder impacts to support effective exit planning and decision making
  • Identify risks, post-transfer issues, and disqualifying events to manage tax consequences and avoid common pitfalls

Technical Content

  • EOT training asks: What is an employee ownership trust?

  • When could an EOT company provide a suitable exit route for the owner?

  • The 5 key qualifying conditions

  • The 3 steps in creating an EOT: Example of how an EOT is created

Appointing trustees of the EOT Finance

Selling a partnership business to an EOT

Financing the acquisition for the EOT

Advantages of selling to an EOT for the vendors:

  • Example scenario

Seeking HMRC (Her Majesty's Revenue and Customs) clearance

Advantages of an EOT for the employees:

  • Example scenario

Incentivising the loyalty of the employees after the transfer

Potential areas of concern:

  • Example – unsuccessful performance after transfer

Potential issues after the transfer for the vendors:

  • Case study – different possible outcomes following the transfer

Disqualifying events after the transfer and their tax consequences conclude this EOT course

Q&As

  • Sessions allow participants to raise examples experienced and discuss the tax implications

  • Regular opportunities throughout training to ask questions and clarify each topic as it is covered

Training Objectives

  • With delivery options both virtual and in-person, EOT training helps participants identify when a transfer to an EOT could provide a suitable exit route for owners

  • Training ensures your understanding of the steps required in the successful creation of an employee ownership trust

  • Sessions discuss the tax advantages for the transferor

  • Participants will investigate the tax advantages for employees

  • EOT online training ensures delegates recognise potential drawbacks of the arrangement for both the former owner and employees

Training Course Summary

This EOT course is designed to help attendees appreciate the attractiveness of employee ownership trusts as a possible exit route for an entrepreneur. The suitability of this route will be explained if other exit routes, such as a third-party sale or a transfer to family members, are deemed to be inappropriate. We discuss the tax advantages for both transferors and company employees, and any potential drawbacks for each. Participants use examples to apply the rules in practice, ensuring a full understanding of the tax consequences for each party upon completion of EOT training.

Your trainer

Redcliffe Trainer 80

Course Trainer · 9 yrs experience

View Profile
  • Corporate Tax Courses

Delivering Redcliffe’s EOT course is a consultancy company Director who specialises in taxation, share scheme advice, reward and lecturing. Having developed a specialised share scheme service for small organisations, he advises FTSE companies on communication. Training covers most aspects of Direct Taxation with our specialists' particular interests, including employment taxation and transfer pricing. Each of these elements poses unusual conceptual challenges.

Before becoming a company executive and director, he worked for Henderson for nearly 9 years. During this time, our expert led the Share Schemes team, gaining extensive experience in designing and implementing employee share plans.

EOT training is led by an expert who completed the CIPD Level 7 Master's qualification whilst at Henderson. Before Henderson, he was with Australia Mutual Provident (AMP) and helped set up one of the first Share Incentive Plans (SIP) for large companies in 2001. At the time, this approach was so innovative that HM Revenue contacted him directly to understand how more large organisations could be encouraged to adopt Share Incentive Plans (SIPs).

Beginning his career in taxation, this expert worked for 16 years in three of the “Big Four” accountancy firms. Ultimately settling as a Senior Manager with Deloitte & Touche, this EOT course lead worked on issues of profit-related pay, share schemes, expatriate tax, tax investigations, reward management, US taxation, transfer pricing and corporate tax.

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