S&W Sessions are a regular series of thought provoking hot topic webinars that are relevant to your business.
In 2014, new tax reliefs were introduced to facilitate employee ownership. The Government introduced these reliefs because it considered that employee ownership would lead to greater employee engagement, higher productivity and lower staff turnover.
The relief allows a capital gain tax ("CGT") free exit to be secured. With business asset disposal relief reduced to £1m, and the potential increase in CGT rates, EOTs are an important structure to consider as a potential exit strategy and succession plan.
This webinar will set out the rules and how the structure works in practice, and highlight some of the key advantages and practical issues facing businesses.
This webinar covered:
An overview of the rules and how to qualify for a CGT-free sale
How to determine whether the structure will be beneficial for your business
The key advantages of becoming employee owned from a tax and commercial perspective
The key challenges to becoming employee owned and where it may not be suitable
Highlighting the main cultural benefits and the overall governance framework
Who should join?
EOT structures can be used as form of exit planning and therefore any business owners considering a management buy out, trade sale or listing should consider an EOT alongside other options. EOTs are also suitable fro any businesses looking for a cultural shift and family owned businesses looking at succession planning.
The structure is beneficial for businesses who seek active employee engagement and are culturally interested in the change and looking for the next level of management to run the business.