Tax and employee ownership for technology businesses

An employee ownership trust (EOT) is a type of employee benefit trust. Its purpose is to hold the shares of a company, enabling a company to become owned by its employees.

An EOT can be set up by a company’s existing owners and can be highly attractive option whether you are a new start-up or the owner of an established business considering your exit strategy. It provides a great alternative for those looking to sell their business, especially where there may not be many trade buyers in the market.

We specialise in advising both public and private companies on the most tax-efficient way to reward their employees by means of share-based incentives called employee incentive schemes.

Our lawyers advise businesses and their owners on the design of the most appropriate employee incentive schemes and strategies to keep costs down and employee engagement and tax efficiency up. We also advise employees and executives on the commercial and taxation impact that comes with being part of such an incentive scheme.

We’re well equipped to help you implement effective employee incentive schemes and employee share schemes, by:

  • choosing the type of share incentive arrangement that works best for your business and your employees, whether by using a Government-approved scheme or a bespoke scheme specific to particular circumstances;
  • drafting all the relevant paperwork, including creating employee benefits trusts; 
  • advising on incentive packages for senior executives;
  • designing the key terms of those packages; and
  • helping your employees to understand the arrangements.

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