Succession Planning (old)
Succession planning is often overlooked until a business owner is approaching retirement, but early planning is essential to maximise tax efficiency and avoid unnecessary disruption.
We advise on all forms of business succession, including:
- Passing ownership to the next generation – Ensuring tax-efficient family business transfers.
- Management buyouts (MBOs) – Structuring sales to existing management teams
- Employee Ownership Trusts (EOTs) – Transitioning businesses to employee ownership for long-term stability (Can we insert a link or section on EOTs see below)
Our team works closely with business owners to design and implement tailored exit strategies, ensuring both commercial and tax objectives are met.
How we can help
Securing pre-transaction clearance is a crucial step in any transaction. When properly submitted with full disclosure of relevant facts, a successful clearance application provides binding assurance from HMRC, reducing the risk of future enquiries. Our team has extensive experience securing clearances across a wide range of transactions. We understand HMRC’s expectations and how to present cases effectively, improving the likelihood of a prompt and successful response. Whether you need clearance for a simple or complex transaction, we can help ensure the process runs smoothly and efficiently.
Employee Ownership Trusts (EOTs)
An Employee Ownership Trust (EOT) allows a company to be owned by its employees, offering significant benefits for both the business and its workforce. This structure can be used as part of a business owner’s exit strategy or as the foundation for a new employee-owned company.
Key Benefits of EOTs
- No requirement to pay dividends, allowing reinvestment into the business.
- Increased employee motivation and retention.
- Tax-free cash bonuses of up to £3,600 per employee, per year.
- Full Capital Gains Tax (CGT) exemption for shareholders selling to an EOT.
We have significant experience designing and implementing EOTs, working alongside vendor shareholders to structure transactions effectively.
