Securing The Succession

Everyone dealing with private companies should be familiar with employee-ownership trusts, especially as a business succession solution, says Graeme Nuttall.

Key Points

• The employee ownership business model is tried and tested.
• The employee ownership trust provides a straightforward way of implementing employee ownership.
• The pre-FA 2014 tax position was that relief would not be available to payments into the trust and a gain would arise on the owner's sale of shares.
• The new capital gains tax exemption on share disposals to an employee ownership trust.
• A new income tax exemption on qualifying bonus payments to employees.

What would you say to a client asking about employee ownership as a succession solution? Sharing Success: The Nuttall Review of Employee Ownership (BIS) (the Nuttall Review) expressed concern that a professional adviser would not know how to react. When the Nuttall Review was published on 4 July 2012, relevant experience and