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ARTICLE · 15 NOVEMBER 2024

Update On Employee Ownership Trusts (EOTs)

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The Autumn Statement preserves the current 100% capital gains tax relief on disposals to Employee Ownership Trusts (EOTs), but new regulations will tighten EOT qualification criteria starting October 2024.

United KingdomTax
Noel Ruddy
Noel Ruddy

In our earlier update we warned that, following a change of government, we could see the full relief from capital gains tax for disposals made to an EOT being restricted or even removed. Well, as you might have seen, we did have some good news in the Autumn Statement – the current 100% relief has not changed.

However, along with many other papers published after the Budget, the government issued a policy paper in response to the consultation process which started back in July 2023. As predicted, the government is looking to tighten up the rules around EOTs and legislation will be introduced in the next finance bill amending sections 236H to 236U of the Taxation of Chargeable Gains Act 1992.

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