Designing, Implementing & Operating Employee Ownership Trusts

Introduction

Employee Ownership Trusts are a potentially tax effective way of realising shareholder value by transferring ownership to employees.

This learn live session examines the qualification criteria in detail and, taking into account the ongoing HMRC consultation in this area, considers 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

What is an EOT?

Use of an EOT to achieve succession/value realisation

• Market context
• Advantages
• Disadvantages

HMRC consultation on EOT

• HMRC proposals
• Industry response
• Likely impact

Establishing an EOT

• 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.