Oliver Dewdney (Smith & Williamson) provides a guide to this alternative ownership structure.
The concept of employee ownership has existed for decades either with direct ownership of shares by employees or the use of employee benefit trusts the most famous example being John Lewis plc.
In recent years the concept has become more popular following the Nuttall Review in 2012 and the subsequent introduction of generous tax reliefs in FA 2014. According to the Employee Ownership Association the number of employee-owned companies has increased by 28% in 2019 with 50% of conversions having occurred since 2017. Employee-owned companies had combined sales of £20.1bn in 2020 and the sector’s revenue growth was up 4.3% in 2020 higher than non-employee owned companies’ growth in the UK of 1.2%.
What is an EOT and how is it funded?
An EOT is a discretionary trust that will...
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Oliver Dewdney (Smith & Williamson) provides a guide to this alternative ownership structure.
The concept of employee ownership has existed for decades either with direct ownership of shares by employees or the use of employee benefit trusts the most famous example being John Lewis plc.
In recent years the concept has become more popular following the Nuttall Review in 2012 and the subsequent introduction of generous tax reliefs in FA 2014. According to the Employee Ownership Association the number of employee-owned companies has increased by 28% in 2019 with 50% of conversions having occurred since 2017. Employee-owned companies had combined sales of £20.1bn in 2020 and the sector’s revenue growth was up 4.3% in 2020 higher than non-employee owned companies’ growth in the UK of 1.2%.
What is an EOT and how is it funded?
An EOT is a discretionary trust that will...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
