Legal Due Diligence & Tax Planning

Updated: Feb 9

Preparing for employee ownership



Our specialist legal partners have a wealth of experience with previous successful transitions to employee ownership. Our legal partners will conduct a legal review to identify any potential impediments or structural issues which may delay a transaction.


Tax planning for shareholders ensures that the business structure and transaction is tax compliant qualifying for full Capital Gains relief and is pre-approved with HMRC. For employees, this could involve placing shares within employee share schemes and minimising income tax liability.


Providing the EOT holds more than 50% of the company shares, the vendors qualify for full CGT relief. Employees can receive a profit share from the company and pay no income tax on the first £3600 each per year.


Complementing the Employee Ownership Trust, direct shares schemes can be implemented such as Share Incentive Plans and Enterprise Management Incentives. This can be a useful tool for linking objectives with incentives and for attracting new talent into the company.


Call us on 01384 274 778 / 075 888 925 88 to discuss or go ahead and book a free consultation to explore your options.


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