2. What are the benefits of an employee ownership trust?
Posted: Wed Feb 19, 2025 7:45 am
EOT facilitates indirect ownership of company shares. While trustees legally own the shares, eligible employees hold the same title, enabling them to benefit from dividends, profits and voting rights without direct share control. This provides benefits such as administrative simplicity and increased stability.
EOT planning is undertaken for a number of reasons and circumstances and the objectives will generally determine whether an EOT is the right solution. Common drivers include where private owners, whether entrepreneurs or guatemala mobile database family businesses, are considering succession planning, supporting growth plans or starting a new venture. However, EOTs should not be viewed solely as tax-planning tools. Their establishment should genuinely benefit the ongoing success of the business and its employees. The overall benefits are explored in the next section.
Driven by the UK government and promoted by organisations such as the Employee Ownership Association, employee ownership is now the UK’s leading SME ownership model. In 2022, there was a 37% increase in the number of such businesses, with half of all such businesses making the transition since 2021. Up from just 17 in 2014, the number of EOTs now exceeds 1,000 and includes leading companies such as ARUP Group Limited, Adventure Forest Group Limited (Go. Ape), and famously, John Lewis Partnership PLC.
EOT planning is undertaken for a number of reasons and circumstances and the objectives will generally determine whether an EOT is the right solution. Common drivers include where private owners, whether entrepreneurs or guatemala mobile database family businesses, are considering succession planning, supporting growth plans or starting a new venture. However, EOTs should not be viewed solely as tax-planning tools. Their establishment should genuinely benefit the ongoing success of the business and its employees. The overall benefits are explored in the next section.
Driven by the UK government and promoted by organisations such as the Employee Ownership Association, employee ownership is now the UK’s leading SME ownership model. In 2022, there was a 37% increase in the number of such businesses, with half of all such businesses making the transition since 2021. Up from just 17 in 2014, the number of EOTs now exceeds 1,000 and includes leading companies such as ARUP Group Limited, Adventure Forest Group Limited (Go. Ape), and famously, John Lewis Partnership PLC.