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CORPORATE LAW

Employee Ownership Trusts (EOT)

Atkins Dellow > Business > Corporate > Employee Ownership Trusts

Expert Employee Ownership Trusts Solicitors

Setting up an Employee Ownership Trust can be a complicated process. Consulting an expert Business Law Solicitor helps you navigate the process with confidence and peace of mind.

Call 0330 912 8338 to book a no-obligation consultation with one of our Employee Ownership Trusts Solicitors today.

We find ourselves helping more and more companies and employees document the process of employees buying the business they work for through Employee Ownership Trusts.

Our expert Business Law Solicitors have experience helping set up Employee Ownership Trusts and can do the same for you. EOTs complex to set up and it’s vital to ensure that everyone involved is fairly represented in the changing ownership of the business.

Need Legal Advice?
Call 0330 912 8338 for a no-obligation chat with one our experts today.

Need Help?

Call 0330 912 8338 to have a no-obligation chat with our expert Business Law Team. They’ll be happy to talk through the process with you, explain what we do, and answer any questions you have.

Alternatively, you can email us with your query and we’ll help in any way we can.

Employee Ownership Trust FAQs

What is an Employee Ownership Trust (EOT)?

Employee Ownership Trusts are arrangements where the employees of a business own the company that they work for. Usually, they occur when the employees of a business buy the company from their employer.

When can an Employee Ownership Trust (EOT) be used?

An Employee Ownership Trust can be used as an Exit Strategy for a business owner, in Succession Planning or by founders of a business that wish for the business to be owned by the employees.

Why would a company choose to become employee-owned?

Companies may choose to become employee-owned to foster a sense of employee engagement and productivity, promote long-term sustainability, and provide tax advantages.

What are the tax benefits of an employee ownership trust?

Owners can enjoy a full exemption from capital gains tax, and employees can receive income tax-free bonuses.

How are employee ownership trusts funded?

Employee ownership trusts can be funded through the company’s future profits or external loans.

Can all employees benefit from an employee ownership trust?

To qualify for the tax advantages, all qualifying employees must be offered the same terms for bonuses.

Do employees manage the company in an employee ownership trust?

No, there will still be a senior management team in place to manage the company.

Are there any legal requirements for setting up an employee ownership trust?

Yes, there are legal requirements and specific processes involved in setting up an employee ownership trust.

Can an employee ownership trust be used for succession planning?

Yes, an employee ownership trust can be an effective succession planning strategy for business owners looking to retire.

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Call 0330 912 8338 to have a chat with our Corporate Law experts.