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Published 7 May 2019
It was the Finance Act 2014 which introduced certain tax reliefs relating to companies owned by an employee ownership trust (EOT), and to individuals who sell their controlling interest to an EOT. An EOT is a collective vehicle which buys a controlling interest in a company and holds it on behalf of all employees.
It is now approximately five years since the first EOTs could have been set up and there is more and more interest from the market in these vehicles. They represent a way to pass a business to the next generation without necessarily taking on new outside partners.
Partner, John Dunlop comments on the advantages, what to watch out for and more in this article which is available to read here.
This article first appeared in the May 2019 issue of PLC Magazine.
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