EOT Scheme (Employee Ownership Trust)

The UK Employee Ownership Trust (EOT) scheme is a route for owners to sell a controlling interest in their company to a trust that holds shares for employees’ benefit. Founders typically receive consideration over time via an agreed funding mix (e.g., vendor loan + bank debt). The business continues under its own brand and leadership, with employees benefiting via a structured profit-share policy.

We’ve structured 87+ of these deals. Most qualifying sellers now pay an effective 12% CGT — the relief was halved in the last Budget, and it still beats every other route on tax.

Benefits commonly sought

• Control: the trust usually acquires ≥51% of ordinary share capital and voting rights
• All-employee benefit: the trust benefits employees on a broadly similar basis
• Trading requirement: the company must be a trading company or group
• Independence & governance: trustee arrangements must be genuine and independent
• Fair value: price must be reasonable based on independent valuation

(We’ll confirm how these apply to your situation and coordinate with your tax/legal advisers.)

The fine print, in plain English: the EOT qualifying rules.

“Exit Better’s knowledge of EOTs was clear from the start.” — Joel Cohen, Emporium Eyewear

• Employees know how ownership works and see the link between effort and reward
• Trustee is independent and confident, with a clear view of success and risk
• Meetings are short, prepared and decisive; actions are tracked to done
• Profit-share is predictable and fair, anchored to sustainable performance
• Dashboards are clear and reviewed monthly; surprises are rare
• Culture feels open, purposeful and steady—even during growth or change