EO Day

25th June 2021 Corporate

The Employee Ownership Trust (EOT) is an indirect  form of employee ownership in which a trust holds a controlling stake in a company on behalf of all its employees and provides an incentive for owners to sell a controlling interest in their business. The EOT was introduced in the Finance Act 2014 as part of the coalition government’s aim of promoting employee ownership as a business model in the UK.

EO Day is the national celebration of employee ownership and all things employee owned in the UK. It brings together the EO sector and supporters to celebrate and raise awareness of the impact employee ownership has on individuals, businesses and the wider economy.

Mark Heppell, partner in JMW’s corporate team comments “We have assisted a number of clients in transitioning to employee ownership over the last few years. It is becoming an increasingly popular method of exit. We expect to see EOT’s becoming more prominent, especially if the government follow through on mooted plans to reform the capital gains tax regime. Whilst the tax advantage is a key driver, employee ownership secures an exit which allows for business continuity, preservation of culture and the empowerment of the wider employee group. It is particularly attractive for people focussed business and should be seriously considered alongside the more traditional area of succession and exit planning.”

Please click here, or contact our corporate team, to find out more about employee ownership.

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Mark Heppell is a Partner located in Manchester in our Corporate department

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