What happens if my company stops qualifying as an EOT after the sale?

If a disqualifying event occurs within four years following the end of the tax year in which the sale took place, the Capital Gains Tax relief already claimed can be withdrawn, and the seller may become liable at the full 24% rate rather than 12%.

Disqualifying events include the company ceasing to satisfy the trading requirements, the trust no longer meeting the statutory EOT conditions, or structural changes that cause the EOT to lose its qualifying status.

This is why ongoing compliance after completion matters just as much as getting the transaction itself right and RM2 provide a compliance service.