The CIOT has responded to the draft legislation published at Autumn Budget 2024 which when enacted will make changes to the tax regime for employee-ownership trusts (EOTs) with effect from 30 October 2024. The EOTs provisions are set out in Sch 6 to Finance Bill 2025.
Noting that the spirit behind the changes is to prevent abuse which says the CIOT is largely addressed ‘they do very little ultimately to reward employees and encourage employee engagement’ – the only real benefit being the £3 600 bonus which has not been uprated since the rules were introduced in 2014. Other concerns include:
an element of disconnect between the business and the employees with the employees having no real benefit from ownership of the business and no control over its day to day running; and
the new statutory relief for contributions to the EOT from the...
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The CIOT has responded to the draft legislation published at Autumn Budget 2024 which when enacted will make changes to the tax regime for employee-ownership trusts (EOTs) with effect from 30 October 2024. The EOTs provisions are set out in Sch 6 to Finance Bill 2025.
Noting that the spirit behind the changes is to prevent abuse which says the CIOT is largely addressed ‘they do very little ultimately to reward employees and encourage employee engagement’ – the only real benefit being the £3 600 bonus which has not been uprated since the rules were introduced in 2014. Other concerns include:
an element of disconnect between the business and the employees with the employees having no real benefit from ownership of the business and no control over its day to day running; and
the new statutory relief for contributions to the EOT from the...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
