Employee Ownership Trusts - Tax Implications and Other Issues

• Identify when a transfer to an EOT could provide a suitable exit route for the owners
• Understand the steps required to create an employee ownership trust
• Discuss the tax advantages for the transferor
• Analyse the tax advantages for the employees
• Understand the potential drawbacks of the arrangement for both the former owner and the employees

• What is an EOT? (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 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

Q&As

• The opportunity to raise examples you have come across and discuss the tax implications
• Regular pauses for questions on each topic covered to take questions and queries

The trainer is a UK Chartered Accountant and Chartered Tax Advisor with over 30 years’ experience of providing technical training on financial reporting and tax topics.

He also provides consultancy advice to accounting firms and businesses on a variety of complex financial reporting and tax topics.

His training sessions are designed to be practical, commercially relevant and interesting.

This employee ownership trust webinar 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.

It will discuss the tax advantages for both the transferors and the employees of the company as well as any potential drawbacks for each.

We will be using examples to apply the rules in practice so that delegates have a full understanding of the tax consequences for each of the parties involved.