Conor Brindley has contributed an article to Tax Adviser in which he explores the benefits, conditions and challenges of employee ownership trusts.
He outlines what employee ownership trusts are and why they are used, as well as the complex conditions a company must meet in order to transition to an employee ownership trust model.
Conor also considers the implications of the changes to employee ownership rules made in the 2024 Autumn Budget, which include restrictions on former owners controlling the employee ownership trust, resident requirements for trustees, ensuring shares are not overvalued, and clarifying tax treatment of contributions to acquisition costs.
In spite of their advantages and the Budget changes, it is clear that employee ownership trusts do not provide a ‘one size fits all’ solution for companies and their succession plans but for the ‘right’ companies can be a very attractive solution.
The full article is available to read at Tax Adviser, by subscription only.
Conor Brindley is a tax specialist in the corporate and commercial team. He has over 20 years’ experience advising clients on the tax aspects of a broad range of transactions.
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