The government announced on 27 April 2023 that it will publish a consultation later this year on the use and effectiveness of the employee ownership trust (EOT) tax regime. This is to ensure that the reliefs are targeted closely at incentivising EOTs as an employee ownership business model while preventing the reliefs from being used for unintended tax planning.
Given the widespread use of EOTs in the last few years this is not a surprise; it will be interesting to see what the proposed changes will be and that they do not stimy the increasing numbers of genuine employee-controlled companies.
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