The recent changes to the Employee Ownership Trust rules bring the regime back to its intended purpose – and may impact many valuations, writes Ritchie Tout (Azets).
More popular than expected
HM Treasury admit that the cost of the Employee Ownership Trust (EOT) tax reliefs was higher than it budgeted for as EOTs were not expected to be so popular. It might be better stated that the opportunity to extract tax-free cash was what was popular rather than the concept of EOTs and it is clear that the popularity has been driven by advisers pouncing on EOTs as a way to extract company profits tax-free. In any event the outcome is the FA 2025 changes which HMRC regard...
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The recent changes to the Employee Ownership Trust rules bring the regime back to its intended purpose – and may impact many valuations, writes Ritchie Tout (Azets).
More popular than expected
HM Treasury admit that the cost of the Employee Ownership Trust (EOT) tax reliefs was higher than it budgeted for as EOTs were not expected to be so popular. It might be better stated that the opportunity to extract tax-free cash was what was popular rather than the concept of EOTs and it is clear that the popularity has been driven by advisers pouncing on EOTs as a way to extract company profits tax-free. In any event the outcome is the FA 2025 changes which HMRC regard...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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