Could an Employee Ownership Trust be right for you?
If you’re thinking of selling and want to protect your people, brand, and the business you built, it’s well worth a closer look.
Quick Quiz
Could this work for you?
We built a short quiz to help you get a sense of fit. It’s not a final answer — but it helps.
What makes a business a good EOT candidate?
If you’re looking for the Capital Gains Tax relief — and let’s face it, who isn’t — there are rules. But they’re not unreasonable.
Profits
Steady, repeatable profit. Doesn’t need to be millions, but it needs to be solid.An owner thinking ahead
If you’re looking to exit in a month, this likely isn’t the route. But if you’ve got 1–5 years in mind, it’s a good fit.People
At least 5 to 10 employees is a good sign. You need a team that can run things — and benefit.Management that can step up
Your second tier doesn’t need to be perfect — but they do need to be capable.A UK trading company
Still operating, still selling, still in the game.
We’ve seen this work across more than 87 businesses, from architects and software firms to manufacturers and contractors. The structure works — if the business does.
Common Scenarios
Here’s when an EOT makes total sense
We’ll be quick. If you see yourself below, an EOT is probably worth looking at.
You’re retiring soon, but not in a rush
You don’t want to sell to a competitor or gut your team. An EOT lets you exit gradually, without losing what made the business yours.
You’ve got no obvious successor
No kids taking the reins? No manager stepping up? No problem. The EOT holds the shares. The business keeps going. See family business succession for the options compared.
You want out, but not the tax bill
With an EOT, half the gain is free of CGT — an effective 12% — if done properly. Compared to 18–24% on a trade sale? Big difference — see the two side by side.
Your team’s strong and worth rewarding
This isn’t just a thank-you. It gives staff real skin in the game. They stay longer. They step up.
You want it to last
Employee-owned businesses are statistically more stable. More resilient. And growing. Close to 3,000 UK businesses are now employee-owned, most of them through EOTs. That number keeps rising.
At JLA, we’re a trusted EOT advisor UK helping business owners across sectors make the right call. If any of these scenarios resonate, you’re likely a strong candidate.
What next?
By now, you’ll know:
- What an EOT is and how it works
- Whether your business meets the typical criteria
- Real scenarios where EOTs shine
- Guidance from a specialist EOT advisor UK
So what now?
Talk to someone who knows this stuff. Who’s done it before. At Exit Better, we’ve been through 87+ EOTs and we’ll tell you if yours is a go or a no, no fluff.
Related points owners ask about
- Tax advantages: Sellers benefit from capital gains tax relief on share sales to the trust.
- Employee motivation: Ownership stake fosters a motivated and committed workforce.
- Long-term stability: EOTs support sustained business continuity and legacy preservation.
- Aligned interests: Employees and leadership share mutual success goals.
- Simplified succession: EOTs provide a clear, structured exit strategy for owners.
- Employee engagement: Employees gain a greater sense of ownership and involvement in the company.
- Business stability: Ownership continuity is ensured beyond the founder, securing the companys future.
- Tax benefits: EOTs offer significant tax reliefs for selling owners and employees.
- Attracting talent: Employee ownership can enhance recruitment and retention.
- Long-term growth: Shared ownership aligns interests for sustainable success.
- Tax benefits: Sellers can avoid capital gains tax on the sale to the EOT.
- Employee incentives: Employees may receive tax-free bonuses boosting motivation.
- Business continuity: EOTs ensure stable ownership and company longevity.
- Enhanced culture: Employee ownership fosters commitment and teamwork.
- Increased engagement: Employees gain a sense of ownership, boosting motivation and commitment.
- Financial rewards: Eligible employees can receive annual tax-free bonuses up to 3,600.
- Decision-making involvement: EOTs encourage greater employee participation in company operations.
- Job stability: The trust structure often provides long-term employment security.
- Improved wellbeing: Employee ownership can reduce workplace stress and increase morale.
Want to explore an EOT?
We’ll walk you through the basics. No pressure. No commitments.
- Free call
- Clear advice
- Real numbers
Takes 60 seconds. You’ve got nothing to lose.
Written by Parag Patel | Strategy and Tax Planning Consultant
Parag leads the Exit Better team at JLA Accountants, advising owners on employee ownership, succession and the tax that comes with both.
About the team