Pett on Employee-Ownership Trusts is about a special type of trust known as an ‘employee-ownership trust’ (EOT) for the benefit of the employees of a company, or group of companies. 

Principally, it is about selling a company (C) to the trustees of such a trust in a manner that affords certain vendors relief from capital gains tax (CGT), and allows the company, once it is majority-owned and controlled by the trustees, to pay tax-free bonuses to its employees. 

Both forms of tax relief were introduced in 2014 to promote the establishment of employee-owned companies and, in particular, companies owned by a trust for the benefit of their employees.

About the author:

David Pett is a tax barrister at Temple Tax Chambers specialising in employment-related taxes, employment trusts, employee-owned companies and related company law, trust law and tax disputes.

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