Employee Ownership Trusts & Employee Share Incentives

We have an established track record advising owners and their companies on the transition to employee ownership via an Employee Ownership Trust (EOT). Our combination of Corporate and Tax expertise provides a seamless service when dealing with the technical requirements to qualify for the tax benefits of being EOT owned.

We can assist owners in considering whether employee ownership is the right way forward for the future of their company. We help to evaluate the competing requirements of protecting the business legacy, the future operation of the business and obtaining a fair price.

We have successfully advised companies on their transition to EOT ownership nationwide. We also advise companies that have made the transition to EOT ownership on any continuing issues that can arise after the transition. We work with specialist advisers who can assist with employee engagement during and after the transition process to ensure the continuing success of being employee owned.

Recruiting and retaining key employees is challenging in competitive sectors where employers are chasing a finite supply of highly qualified and sought-after individuals. Share Options and Employee Incentives can provide a differentiator for employers and Geldards can assist with the drafting and implementation of a wide range of these arrangements.

We can:

  • help you ensure that the rewards are subject to capital gains tax rather than income tax due to the lower rates of capital gains tax and the availability of a CGT annual allowance.
  • advise on the wide range of share option arrangements including the Enterprise Management Incentives (EMI) scheme, including ensuring that your company documentation (e.g. articles of association) work with the share option documents.
  • advise on all employee share option schemes such as the Share Incentive Plan and the Share Save scheme.

Where a company needs to warehouse shares or purchase shares from departing shareholders, we can assist by advising on the setting up of employee benefit trusts to act as a buyer of shares and a method of creating an internal market for shares.

When “tax approved” share option schemes do not meet your requirements, we can advise on unapproved arrangements including LTIPs and phantom share option schemes which can provide high value rewards in the appropriate circumstances.

We work closely with your accountants to ensure that appropriate share valuations are prepared and agreed with HMRC and to ensure that all necessary returns regarding the share options are filed with the tax authorities.

Like to talk about Employee Ownership Trusts (EOTs) and Employee Share Incentives?

What clients say

"Geldards have proved to be invaluable whilst guiding us through the employee ownership transition. We have been reassured throughout the process by Geldards' professionalism and competence. I would recommend them to anyone contemplating an EOT."

Bruce Bollington, Lorax

"We were looking for a one stop shop that could deal with all the complexities of setting up an EOT and Geldards were the obvious choice. They were excellent from beginning to end. "

Dylan Huws, Cwmni Da

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