Designing, Implementing & Operating Employee Ownership Trusts

Introduction

Employee Ownership Trusts (EOT) are a potentially tax effective way of realising shareholder value by transferring ownership to employees. Although originally introduced in 2014, there are a number of new rules to consider following the conclusion of the recent HMRC consultation.

This virtual classroom seminar considers the impact of the new rules and examines, in detail, the qualification criteria and the tax, legal, and practical issues around designing, implementing, and operating an Employee Ownership Trust. It is aimed at any professional adviser who acts for:

• Employee Ownership Trusts
• Companies with an Employee Ownership Trust as shareholder
• Clients who are considering implementing and/or disposing of shares to an Employee Ownership Trust
• Clients with an acquisition strategy that may involve companies owned by Employee Ownership Trusts

It is also relevant to company secretaries, benefits managers, and in-house personnel responsible for the implementation or day to day running and management of or liaison with Employee Ownership Trusts.

What You Will Learn

This live and interactive session will cover the following:

• What is an EOT?
• Use of an EOT to achieve succession/value realisation
• Market context
• Advantages
• Disadvantages
• Recent changes to the rules on EOT
• Effective date
• Analysis and commentary
• Impact on existing EOTs
• Establishing an EOT post October 2024
• Qualifying criteria
• Selecting trustees
• Trust documentation
• Reporting
• Selling shares to an EOT
• Tax reliefs
• Process
• Valuation
• Financing
• HMRC clearance
• Ongoing operation
• Governance
• Payments to and from an EOT
• Disqualifying events
• Maintaining compliance
• Incentivising key management
• Acquiring shares from an EOT
• Third party purchaser
• Moving to direct employee ownership
• Winding up an EOT

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.