Should you sell your broking business to an Employee Ownership Trust?
Tax-efficient exit strategies and staff incentivisation have become hot topics among broker leaders since the recent increases in Capital Gains Tax and Employer National Insurance. In the second part of a series focused on the fallout from the 2024 Labour Budget, Catherine Heyes examines how broker owners can use Employee Ownership Trusts to respond to these developments.
EOTs have been around since 2014, but tend not to have a particularly high profile. They can provide an effective and efficient exit route for broker owners, whilst offering longer-term incentivisation and equity ownership for employees.
What are the tax benefits?Selling their interest to an EOT is a mechanism broker owners could consider if they want their employees to take over the running of the business, or when a sale to a third party is not an option. There is also a tax advantage to using
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