Under the new regime, which comes into effect immediately, the relief available on these disposals will be reduced from 100% of the gain to 50%.

That means CGT at 12% instead of 0% previously. However, other benefits remain in place.

The current capital gains tax (CGT) relief available on qualifying disposals to employee ownership trusts (EOTs) allows business owners to sell their shares without paying any CGT, with around half of the relief going to the largest 10% of disposals.