Tuesday, August 5, 2025
  • About
  • Write for us
  • Contact
Today News
  • Business
  • Tech
    Spreadsheet

    From Spreadsheet to Smart System: Why Financial Teams Need Web Apps and Formula Transparency

    Why eSIMs Are a Game Changer for Remote Workers

    Why eSIMs Are a Game Changer for Remote Workers

    Ways to Share Video Content Without Internet Access

    Ways to Share Video Content Without Internet Access

    Why UK Grant Management Software Is Essential for NGOs

    Why UK Grant Management Software Is Essential for NGOs

    One App, Infinite Uses: How Revolut Is Reshaping Online Transactions

    One App, Infinite Uses: How Revolut Is Reshaping Online Transactions

    VPNs

    Households and VPNs: The New Normal in Digital Protection

    How Are Facial Recognition Technologies Transforming the Betting Experience in London’s Live Casinos

    How Are Facial Recognition Technologies Transforming the Betting Experience in London’s Live Casinos

    Real-Time AML Checks: Why Speed Matters in Compliance

    Real-Time AML Checks: Why Speed Matters in Compliance

    Will the iPhone 17 Pro Compete with Samsung’s Best Handsets?

    Will the iPhone 17 Pro Compete with Samsung’s Best Handsets?

  • Consumer
    Craving Connection: Why Food Gifting Is the New Love Language

    Craving Connection: Why Food Gifting Is the New Love Language

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to Celebrate Milestones from Afar: The Rise of Digital Gifting in the UK

    How to adjust glasses at home – a step-by-step guide!

    How to adjust glasses at home – a step-by-step guide!

    Why quality toilet cubicle hardware matters

    Why quality toilet cubicle hardware matters

    Common Mistakes in KYC Identity Verification

    Common Mistakes in KYC Identity Verification

    Consumer habits

    British Furniture Market Sees Significant Changes in Consumer Preferences

    Why are high-street bookmakers declining in the UK?

    Why are high-street bookmakers declining in the UK?

    Straps for smartwatches: The Complete guide

    Straps for smartwatches: The Complete guide

    High street retailers are at a “crossroads”, says retail tycoon

    High street retailers are at a “crossroads”, says retail tycoon

  • Finance
    Using a Laptop

    How to Accept Altcoin Payments and Upgrade Your UX Strategy

    Crypto Loans Meet Open Banking: Will Hybrid Products Redefine Borrowing?

    Crypto Loans Meet Open Banking: Will Hybrid Products Redefine Borrowing?

    Fintevex.io vs The Rest: What Happened When We Put It to the Test

    Fintevex.io vs The Rest: What Happened When We Put It to the Test

    5 Smart Money Moves For Dynamic People

    5 Smart Money Moves For Dynamic People

    What Is a Payment Gateway and Why Your Business Needs One

    What Is a Payment Gateway and Why Your Business Needs One

    How Ethereum is changing things in the business world in 2025

    How Ethereum is changing things in the business world in 2025

    Financial Literacy and Artificial Intelligence – A Psychologist’s Perspective

    Financial Literacy and Artificial Intelligence – A Psychologist’s Perspective

    Everything You Need to Know About Multi-Million Loans

    Everything You Need to Know About Multi-Million Loans

    Fueling Growth: How a UK Gambling License Boosts Investor Confidence

    Fueling Growth: How a UK Gambling License Boosts Investor Confidence

  • Environment
    Five Ocean Discoveries That Could Change How We See the World

    Five Ocean Discoveries That Could Change How We See the World

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Choosing the Right Sustainability Partner: How Eco-Efficient Tech Transforms Industry

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    Moving Abroad? Here’s What to Expect – and Why Cardboard and Plastic Waste Removal Is Essential After Unpacking

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    How Weather Events Like Heavy Rain or Heatwaves Affect Pest Activity

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    Building a Carbon-Competitive Advantage with Sustainability and Decarbonization Consulting

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    The Lost Art of Orienteering: Why Map and Compass Skills Still Matter

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Sustainability in Dining: Reducing Waste for a More Profitable Future

    Environmental Benefits

    What Are The Environmental Benefits Of Choosing Eco-friendly Rubbish Removal In Croydon?

    Why You Should Hire Waste collectors for efficient waste removal

    Why You Should Hire Waste collectors for efficient waste removal

  • Property
    How To Plan Your Home Improvements in Six Easy Steps

    How To Plan Your Home Improvements in Six Easy Steps

    Budgeting for a House Sale: What Most Sellers Forget

    Budgeting for a House Sale: What Most Sellers Forget

    Home and business removals: Streamlining your move

    Home and business removals: Streamlining your move

    Maximizing Your Investments: A Guide to Purchasing Villas for Sale in Dubai 2025

    Maximizing Your Investments: A Guide to Purchasing Villas for Sale in Dubai 2025

    6 Common Admin Mistakes that Property Managers Make

    6 Common Admin Mistakes that Property Managers Make

    Property Investment Strategy

    Interest Rate Hikes and How They Impact Your Property Investment Strategy

    How Local Storage Services Make Home Organisation Easy

    How Local Storage Services Make Home Organisation Easy

    Stay safe at home: The benefits of intruder alarms in St Helens

    Stay safe at home: The benefits of intruder alarms in St Helens

    Enhancing your home projects with essential hardware selection tips

    Enhancing your home projects with essential hardware selection tips

  • eCommerce
    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    From 1688 to shopee: the singaporean seller’s guide to paying china suppliers

    The Importance of Digital Valuations for UK Ecommerce Brands

    The Importance of Digital Valuations for UK Ecommerce Brands

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    Blink-and-Buy: Designing Checkouts That Convert in Under 10 Seconds

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    High Stakes Strategies: Lessons E-commerce Entrepreneurs Can Learn from Casinos

    Amazon Expert

    Amazon Expert: Key Qualifications to Look For

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Boosting Ecommerce Revenue with Smart Targeting Strategies

    Personalized Shopping: How Technology is Transforming Retail

    Personalized Shopping: How Technology is Transforming Retail

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    How Can Ecommerce Businesses Learn From Entertainment Platforms?

    Magento Web Development Company: Unlocking the Power of E-Commerce

    Magento Web Development Company: Unlocking the Power of E-Commerce

No Result
View All Result
Today News
Home Business

Employee Ownership Trust in Today’s World: A Modern Solution for Business Succession

David Prior by David Prior
February 16, 2025
Reading Time: 4 mins read
Employee Ownership Trust in Today’s World: A Modern Solution for Business Succession
470
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Over the past couple of years, Employee Ownership Trusts (EOTs) have emerged as a viable option for UK companies. As a succession strategy, this framework offers a new avenue, allowing companies to pass ownership to employees rather than relying on traditional options like external purchasers or family succession. With the evolving economic scenario and work culture in the modern era, the EOT framework offers a unique opportunity for business owners and employees alike.

What is an Employee Ownership Trust?

An employee ownership trust (EOT) is a legal arrangement that enables businesses to transfer ownership to the employees. In this arrangement, the business owner sells a majority or all of their shares to a trust, which is held on behalf of the employees. The employees, without being shareholders of specific shares, benefit from the trust ownership through bonuses, profit-sharing and a say in the management of the business.

Related posts

Hidemyacc

Looking for a Dolphin Anty Alternative? Try Hidemyacc

August 4, 2025
293
Boost Your Online Presence with Expert SEO in Birmingham

Boost Your Online Presence with Expert SEO in Birmingham

August 4, 2025
544

This structure is beneficial to both exiting entrepreneurs and employees wishing to share in the company’s success. In addition, EOTs can be tax-efficient for both the seller and the employees, making them a popular option for succession planning.

Why Businesses are Turning to Employee Ownership Trusts

The popularity of EOTs derives from the fact that it assists in creating a sustainable structure of ownership while giving employees a stake in the company’s future. For business owners, the transition to an EOT can be a way of securing the long-term success of the business while preserving the established culture of the firm. For employees, the possibility of shared ownership enhances a feeling of responsibility and interest in the company’s performance.

Another key driver of the growth of EOTs is the growing recognition of the need for employee well-being and job security. Employees with a stake in the business are more likely to be motivated and committed, understanding that their efforts directly impact their financial future. Moreover, businesses structured as EOTs also enjoy improved staff retention and productivity.

The Benefits of an EOT for Business Owners

The other major advantage of choosing an Employee Ownership Trust as a succession planning model is the assurance of tax relief. Owners selling their interests to an EOT qualify for Capital Gains Tax (CGT) relief, which means they can exempt the sale of their business from taxation. This renders the model highly attractive to business owners looking to retire or sell their businesses without the burden of high taxation.

Additionally, the EOT model can help preserve the legacy of a company by maintaining its dominant culture and values. The majority of business owners prefer this approach as it ensures that their employees, who have contributed to the company’s success, are rewarded and have a say in its future.

How the Employee Ownership Trust Works

The setting up of an Employee Ownership Trust begins with the setup of a trust, which then purchases the shares from the business owner. This is carried out under the watchful eye of trustees, who are usually appointed by the business owners and can also include employees. The trust holds the shares for the benefit of the employees and the company’s profits are distributed among them in the form of bonus schemes and other monetary incentives.

It must be noted that although the employees lack personal shares, they are compensated by the business ownership through profit-sharing plans. The plan provides employees with a genuine stake in the financial success of the business, which makes them feel more connected to the company’s goals.

Examples of EOT Companies in the UK

Several UK businesses have effectively implemented the Employee Ownership Trust model, proving its viability in practical situations. A good example is John Lewis, the UK’s biggest employee-owned company. Although John Lewis has a different ownership model, it has been a strong proponent of employee ownership for many years and its success has encouraged numerous companies to consider adopting similar models.

Another example is Aardman Animations, the makers of Wallace and Gromit. The company transitioned to employee ownership in 2013, when the original members voted to sell the company to an EOT. This allowed the employees to retain a sense of ownership and responsibility while delivering long-term security for the creative studio.

Other businesses, like Twelve Trees and Dove and Boweevil Co., have also followed the EOT model, offering further examples of the model’s adaptability across a variety of industries, from creative endeavours to food production.

Considerations for Transitioning to an EOT

While the benefit of an Employee Ownership Trust is clear, its implementation does require careful planning. Business owners must work with financial and legal advisors to ensure the trust is set up correctly and the process of selling shares to the trust is done in a way that is fair to both the seller and the employees.

The process may also involve governance reforms within the company, as the new trustees must be appointed and assigned the task of running the trust. The employees may also need to be educated on the running of the new entity because their status within the firm will change in terms of ownership and decision-making powers.

The future of Employee Ownership Trusts looks promising, with more businesses looking for ways to adapt to modern demands. As the economy continues to change and more employees want job security and ownership, the EOT model is a viable option. 

Order ID54775
Orderlink ID234979
Linktodaynews.co.uk

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

Previous Post

Avoid Parking Hassles: Why an Airport Taxi is the Better Option

Next Post

Bitcoin in daily life: Who accepts it and how to use it in 2025?

Related Posts

Hidemyacc
Business

Looking for a Dolphin Anty Alternative? Try Hidemyacc

August 4, 2025
293
Boost Your Online Presence with Expert SEO in Birmingham
Business

Boost Your Online Presence with Expert SEO in Birmingham

August 4, 2025
544
Plant-Based Products
Business

Choosing a Trusted Wellness Dispensary for Quality Plant-Based Products

August 4, 2025
294
Ice Vending Machines
Business

Why Ice Vending Machines Are a Cool Investment for Modern Entrepreneurs

August 4, 2025
337
SEO Audit
Business

The 2025 SEO Audit & Action Checklist Every Business Owner Needs

August 4, 2025
432
Reapplying Perfume
Business

How to Smell Good After the Gym Without Reapplying Perfume?

July 31, 2025
289
Next Post
Bitcoin in daily life: Who accepts it and how to use it in 2025?

Bitcoin in daily life: Who accepts it and how to use it in 2025?

RECOMMENDED NEWS

The Importance of Digital Valuations for UK Ecommerce Brands

The Importance of Digital Valuations for UK Ecommerce Brands

2 months ago
463
What Is the Best Way to Network in College?

What Is the Best Way to Network in College?

3 years ago
331
Reduce fixed costs: 5 tips that quickly bring companies success

Reduce fixed costs: 5 tips that quickly bring companies success

8 months ago
527
The Ultimate Guide to Buying Tickets for 89 Show Pattaya

The Ultimate Guide to Buying Tickets for 89 Show Pattaya

1 year ago
50

BROWSE BY CATEGORIES

  • Business
  • Careers
  • Charity
  • Consumer
  • Culture
  • eCommerce
  • Education
  • Energy
  • Engineering
  • Entertainment
  • Entrepreneurs
  • Environment
  • Fashion
  • Finance
  • Food & Drink
  • Gaming
  • Gardening
  • Health
  • Insurance
  • Interiors
  • Legal
  • Leisure
  • Lifestyle
  • Manufacturing
  • Marketing
  • National
  • News
  • Opinion
  • Pets
  • Politics
  • Property
  • Sales
  • Sport
  • Sports
  • Tech
  • Transport
  • Travel
  • Uncategorized

BROWSE BY TOPICS

Agency AI autosmart banking Beauty business Christmas construction cyber security data digital Digital Marketing Services ecommerce entertainmnet finance fitness Forex health inflation insurance kitchen KYND lifestyle manchester music News north overseas Personal Injury Pharmaceutical Industry property Real Estate recruitment Sir Michael Morpurgo Skincare sports technology tourism travel UK vehicles Warkworth village watch workspace yorkshire

Latest news

Yangmingshan National Park

Explore Yangmingshan National Park: The Ultimate 2025 Guide

August 4, 2025
Waterfalls

Hidden Waterfalls in New York City: Urban Oases Await

August 4, 2025
Hidemyacc

Looking for a Dolphin Anty Alternative? Try Hidemyacc

August 4, 2025
Boost Your Online Presence with Expert SEO in Birmingham

Boost Your Online Presence with Expert SEO in Birmingham

August 4, 2025
Plant-Based Products

Choosing a Trusted Wellness Dispensary for Quality Plant-Based Products

August 4, 2025
Ice Vending Machines

Why Ice Vending Machines Are a Cool Investment for Modern Entrepreneurs

August 4, 2025
Spreadsheet

From Spreadsheet to Smart System: Why Financial Teams Need Web Apps and Formula Transparency

August 4, 2025
SEO Audit

The 2025 SEO Audit & Action Checklist Every Business Owner Needs

August 4, 2025
Patient receives an Osteopathy treatment

Europe’s leading Osteopathy chain, Osteonordic, is now expanding into the UK

August 4, 2025
Using a Laptop

How to Accept Altcoin Payments and Upgrade Your UX Strategy

August 4, 2025

Today News

  • About
  • Write for us
  • Contact
  • Privacy Policy

@2024 Rooftree Publishing Ltd

Today News in association with Kajino.com

Sign up for our newsletter




  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce

Recent News

Yangmingshan National Park

Explore Yangmingshan National Park: The Ultimate 2025 Guide

August 4, 2025
Waterfalls

Hidden Waterfalls in New York City: Urban Oases Await

August 4, 2025
No Result
View All Result
  • Home
  • Business
  • Tech
  • Consumer
  • Finance
  • Environment
  • Property
  • eCommerce
  • Write for us
  • About
  • Contact