Employee Ownership Trusts after the 2024 Budget
Recorded March 2025 · Episode 1 · 9:48
In this episode I examine employee ownership trusts and, in particular, the changes introduced in the October 2024 Budget. An EOT allows a controlling interest in a company to be sold to a trust for the benefit of its employees, with the disposal potentially free of capital gains tax. I explain how the relief works, the conditions that must be met, and the tightening the Budget brought in — including the requirement that the trustees be UK resident, the restrictions preventing former owners from retaining control through the trustee board, and the steps trustees must take to satisfy themselves that the price paid does not exceed market value. I also consider what the changes mean for anyone now contemplating a sale to an EOT.
This podcast is not a substitute for professional advice.