What is an Employee Ownership Trust?
Posted: Wed Feb 19, 2025 7:45 am
Building on the Nuttall Review's recommendations, the Finance Act 2014 , enacted by the UK's Clegg-Cameron coalition, was designed to promote a model of employee ownership. Its main aim was to promote a more responsible, diverse and, as a result, stronger economy. A sentiment supported by the current Prime Minister and Chancellor, Rishi Sunak and Jeremy Hunt , who are currently considering reforms to encourage employee ownership in the UK to boost the economy.
This concept is not unique to the UK and broadly similar company models exist guatemala mobile database around the world, although there may not be comparable tax incentives. For example, the United States Employee Stock Ownership Plan (ESOP) , France's Société Cooperative de Production (SCOP) , Australia's Employee Share Schemes (ESS) and any number of other worker cooperative or share purchase models.
EOT is a method of simplifying the employee ownership model. EOTs are a restricted form of EBT that are settled by the founders or current owners of a company and involve transferring ownership of the business into a trust for the long-term benefit of all eligible employees.
This concept is not unique to the UK and broadly similar company models exist guatemala mobile database around the world, although there may not be comparable tax incentives. For example, the United States Employee Stock Ownership Plan (ESOP) , France's Société Cooperative de Production (SCOP) , Australia's Employee Share Schemes (ESS) and any number of other worker cooperative or share purchase models.
EOT is a method of simplifying the employee ownership model. EOTs are a restricted form of EBT that are settled by the founders or current owners of a company and involve transferring ownership of the business into a trust for the long-term benefit of all eligible employees.