Employee ownership trusts as an exit option

Greg Vincent, partner at Morr & Co LLP considers the tax pros and cons of using employee ownership trusts (EOTs) as an exit strategy for LLPs and accountancy firms, despite rise in rate of capital gains tax

Employee ownership trusts (EOTs) have dipped in popularity since the government reduced the associated tax relief, but businesses shouldn’t be too hasty to rule it out as an option for their exit strategy.

The change, effective from November 2025, has coincided with a noticeable slowdown in new EOT transitions. Statistics published by the Employee Ownership Association (EOA) show a clear change in momentum when set against the growth seen in earlier years.

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