First published in Tax Journal on 25 January 2019.
Employee-owned companies can provide a strong foundation for business growth and success.
The continued increase in their use as an alternative business structure and to provide succession planning for owners is here to stay. The rules are complex and the long-term operation of employee-owned businesses needs to be managed within the framework of the legislation to ensure the tax reliefs continue to be available. Owners considering transitioning to an employee ownership trust model need to ensure it is culturally right for their business and not purely a way of facilitating an exit on a tax-free basis.