Employee Ownership Trusts
An Employee Ownership Trust (EOT) is a special form of employee benefit trust introduced by the Government in September 2014 in an attempt to encourage more shareholders to set up a corporate structure similar to the John Lewis model. The aim is to facilitate wider employee ownership, albeit via an indirect holding.
The incentive for owners is that the Government introduced very generous tax breaks to encourage shareholders to move to an employee-ownership model. However, in order to qualify for the tax incentives, employee ownership needs to be structured in a particular way.
Check out how the sale to an EOT works, at the button below.