The implementation of an EOT involves the transfer of shares in a trading company, from the original owners, to a trust. The trust then holds the shares on behalf of the employees of the company.
Herrington Carmichael have a specialised team who have represented many clients in various EOT transactions.
We are able to advise on all stages of the EOT process, including:
- Providing initial guidance on whether the relief requirements as set out in s236H(4) TCGA 1992 are likely to be satisfied to allow CGT relief to be obtained;
- Preparation of the HMRC clearance letter;
- Management of the due diligence process;
- Assisting in the explanation of the EOT process to employees;
- Advising on the trust composition;
- Drafting and negotiating transaction documents; and
- Advising on post-completion requirements.
