What is an Employee Ownership Trust?

An EOT is a government-supported structure that enables business owners to sell their company to their employees through a trust arrangement. Introduced by the Finance Act 2014, EOTs provide significant tax advantages while creating a sustainable ownership model that preserves company culture and values.

Why choose Level for your EOT transition?

Our EOT practice is led by Robin Hartley, who brings 16 years of employee ownership expertise and has advised on EOT transactions with a combined value exceeding £500 million. Robin's unique background spanning Magic Circle, Big-4 accountancy, and leading City law firms equips him to provide holistic advice that considers all aspects of your transition to employee ownership.

Our EOT Services

We provide end-to-end support for your EOT journey:

Initial Assessment and Planning

• Detailed feasibility analysis
• Financial modelling and structuring advice
• Comparative analysis with alternative exit options
• Strategic planning for implementation

Transaction Support

• Company valuation guidance
• Documentation preparation and review
• Tax planning and clearances
• Regulatory compliance and approvals
• Financing structure optimisation
• Implementation support

Post-Transaction

• Employee communication strategies
• Governance structure setup
• Ongoing compliance support
• Additional incentive scheme design

Our Approach

We understand that transitioning to employee ownership is about more than just tax benefits. Our approach focuses on finding the right balance between:

• Achieving fair value for selling shareholders
• Ensuring sustainable business operations
• Maintaining company culture and values
• Creating meaningful employee engagement
• Establishing effective governance structures

Benefits of an EOT

For Business Owners

• 100% capital gains tax relief on qualifying sales
• Fair market value for selling shareholders
• Legacy preservation
• Controlled transition process
• Lower transaction costs
• Reduced complexity compared to trade sales
• No requirement for external buyer negotiations

For the Business

• Preservation of independence
• Protection of company culture and values
• Enhanced employee engagement
• Improved business resilience
• Potential for increased productivity
• Sustainable ownership structure

For Employees

• Annual tax-free bonuses up to £3,600
• Increased job security
• Enhanced engagement and motivation
• No personal investment required

Why Choose Level?

Our EOT practice combines deep technical expertise with practical commercial understanding. We pride ourselves on:

• Clear, straightforward advice
• Commercial focus
• Collaborative approach
• End-to-end support
• Proven track record

Contact Us

Contact Robin Hartley directly to discuss how an EOT might work for your business.

We can help you evaluate whether an EOT is the right choice for your business and guide you through every step to employee ownership.