Why you should now consider selling your business to an employee ownership trust

There has never been a better time for companies to move to an employee ownership structure. Since September 2014, shareholders have been able to sell (as a minimum) a controlling interest in their company to an employee ownership trust (EOT) for full market value without incurring any CGT liabilities. The EOT creates an immediate purchaser for a trading company of any size operating in any sector. The EOT will then hold those shares in the company for and on behalf of the company’s employees. There are substantial non-tax benefits associated with being owned by an EOT. In addition, companies can make tax-free payments to their employees.