Why owners choose employee ownership
Why Consider an Employee Ownership Trust
Exit smart. Reward your team. Secure your legacy.
An EOT can provide an alternative to a trade sale, helping owners protect company culture, support business continuity, and move ownership into a structure designed to benefit employees, while potentially accessing valuable tax advantages.
Employee ownership
Transfer ownership to the people who know your business best: your employees.
Benefits of exiting via an EOT
A structured exit that can support continuity, reward staff, and offer tax advantages.
Business continuity
Protect your company's culture, clients, and operations through a managed transition.
Full market value potential
An EOT sale can be structured at fair market value, assessed by independent valuation.
Introduction to EOTs
An Employee Ownership Trust typically uses a trust company limited by guarantee, meaning there are no external shareholders in the trust itself. The sale process is usually vendor and adviser led, with the trust holding shares for the benefit of employees as a collective group rather than requiring individual employee approval of the transaction.
For business owners, the EOT model can help preserve company culture, retain key staff, and support a gradual transition where appropriate. It offers a credible alternative to a trade sale or management buyout, particularly for owners who want their business to continue in a form they recognise.
Capital Gains Tax on Your Business Sale
For qualifying disposals made on or after 26 November 2025, 50 percent of the gain is exempt from Capital Gains Tax, with the remaining 50 percent taxed under normal CGT rules. The previous full CGT exemption no longer applies. Business Asset Disposal Relief and Investors' Relief are not available where EOT relief is claimed.
Despite those changes, an EOT exit can still be commercially attractive depending on valuation, funding structure, succession priorities, and wider deal objectives. Many business owners continue to find the EOT model compelling when the full picture, including continuity, employee benefit, and legacy, is taken into account.
Please note: Tax treatment depends on individual circumstances and the qualifying EOT rules. Always take professional tax advice.
Talk to the Employee Ownership Experts
If you're considering an EOT as part of your exit strategy, we welcome a confidential discussion about your business and how employee ownership could work for you.
Contact UsRelated EOT resources
Continue your research with our core guides on Employee Ownership Trusts.
Read the EOT 101 guide
A plain-English introduction to Employee Ownership Trusts and how they work in the UK.
Compare UK exit options
EOT, trade sale, MBO and private equity weighed up across price, speed, risk and culture.
Get an EOT feasibility report
An independent assessment of whether your business is a strong candidate for employee ownership.
Browse the EOT Insights hub
In-depth articles on valuation, funding, governance and life after an EOT transition.