What is an Employee Ownership Trust (EOT)?

An Employee Ownership Trust is a structure that holds a controlling stake in a company on behalf of all of its employees. Because the trust owns the shares, the company becomes indirectly employee owned, and is known as an Employee-Owned Business (EOB).

EOTs were introduced by the government in 2014 to encourage employee ownership, and they are most often used as part of an exit or succession strategy for a business owner. Selling to an EOT gives the seller 50% relief from Capital Gains Tax.

Read more about Employee Ownership Trusts.