United Kingdom: Trusts

Employee Ownership Trusts (EOTs) surged by 27% last year in the UK, attracting founders with tax efficiency, legacy preservation, and enhanced employee rewards amid potential capital gains tax changes.

Since the introduction of Employee Ownership Trusts (EOTs) in 2014, the sector has expanded significantly, allowing many companies to transition into employee ownership. This article discusses the complexities and implications of exiting EOT ownership, including tax considerations, the roles of trustees, company directors, and potential buyers, emphasizing that such decisions should prioritize employee interests and be well-informed.

Trusts are a complex yet valuable tool for future planning, offering benefits in asset management, tax planning, and care planning. Expert guidance is essential to navigate their rules and suitability.