How Have the EOT Rules Changed in 2024? | Updates to Employee Ownership Trust Rules
Between July and September 2023, a government consultation was held on the taxation of Employee Ownership Trusts (EOTs) and Employee Benefit Trusts (EBTs). This consultation aimed to review the favourable tax treatment of these trusts, particularly EOTs, which have grown enormously in popularity since their introduction in 2014.
Following this consultation and its findings, the government has announced several changes to the rules regarding EOTs, specifically the tax relief available to exiting shareholders when the right conditions are met.
Key Points:
00:20 – Why Did the Government Make Changes to EOTs in 2024?
00:32 – Change #1: Reduced Involvement of Former Owners Post-Sale
00:51 – Change #2: New Residency Rules for EOT Trustees
01:13 – Change #3: Updated Tax Payments to EOT Contributions
01:30 – Change #4: Directors and Tax-Free Bonuses
01:46 – Change #5: Tax Recovery Extension
02:02 – Change #6: New Share Price Restrictions
02:22 – Change #7: Extra Requirements for Capital Gains Tax Relief
02:43 – Additional Changes
02:55 – An Accountant's Perspective on the EOT Changes
03:08 – How Shorts Can Help
03:37 – Advice For Business Owners Considering an EOT
Learn more about EOTs:
www.shorts.uk.com/eot
https://blog.shorts.uk.com/changes-to...
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