David Pett (Temple Tax Chambers) discusses the trustee’s duties to consider what is in the best interests of the beneficiaries as a class, how the sale proceeds are to be distributed and the tax consequences of any sale.
It is now ten years since controlling interests in companies were first sold to ‘employee ownership trusts’ or ‘EOTs’ (as provided for in FA 2014). Perhaps not unexpectedly some of those companies are now being sold on by the trustees and the EOTs are being brought to an end. However given that the original policy intention was to encourage the long-term ownership of such companies for the benefit of their employees there is invariably a tension between that and the idea that the company should now be sold on typically to a trade purchaser. In particular it is all too easily assumed that if by...
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David Pett (Temple Tax Chambers) discusses the trustee’s duties to consider what is in the best interests of the beneficiaries as a class, how the sale proceeds are to be distributed and the tax consequences of any sale.
It is now ten years since controlling interests in companies were first sold to ‘employee ownership trusts’ or ‘EOTs’ (as provided for in FA 2014). Perhaps not unexpectedly some of those companies are now being sold on by the trustees and the EOTs are being brought to an end. However given that the original policy intention was to encourage the long-term ownership of such companies for the benefit of their employees there is invariably a tension between that and the idea that the company should now be sold on typically to a trade purchaser. In particular it is all too easily assumed that if by...
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