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Tax United Kingdom For businesses

Employee Ownership Trust (EOT) Tax Relief Check

Check whether your company sale to an Employee Ownership Trust qualifies for Capital Gains Tax relief and meets the ongoing qualifying conditions.

Start free check 10 questions · 7 minutes · No signup
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Did you know? The numbers behind this check.

  • Over 50%Controlling interest needed
  • 50%Relief for disposals from 26 Nov 2025
  • Up to £3,600/yrTax-free bonus per employee
  • 5Key qualifying conditions

Why this matters.

Selling a controlling interest in a trading company to an Employee Ownership Trust (EOT) can qualify for Capital Gains Tax relief under section 236H of the Taxation of Chargeable Gains Act 1992. The rules have tightened recently: Finance Act 2024 added requirements on trustee independence, trustee control and the value paid, and the Autumn Budget 2025 reduced the relief to 50% for disposals made on or after 26 November 2025. Sellers, directors and advisers should confirm which rules apply to their transaction date.

The conditions do not end at completion. The company must remain a trading company, the trust must keep a controlling interest, and benefits must be offered to all eligible employees on equal terms. A disqualifying event during the clawback period can bring the original gain back into charge and create a significant unexpected tax bill. Companies also need to meet reporting and record-keeping obligations to HMRC, so early planning matters.

Have these to hand.

  • The date of the sale (or planned sale) to the trust
  • Details of the trust's trustees and how they were appointed
  • The share structure and percentage held by the trust and former owners
  • How the company currently shares profits and benefits with employees

What you’ll get.

  • 1A score out of 100Where you stand today, at a glance.
  • 2Findings ranked by riskWhat could cost you, highest risk first.
  • 3A plan with timeframesWhat to fix first and by when.

Use this free tool to check whether a sale to an Employee Ownership Trust meets the qualifying conditions for Capital Gains Tax relief, and what you need to monitor afterwards. Get a clear action plan in minutes.

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General guidance only, not legal advice. Consult a qualified solicitor or adviser in your jurisdiction for specific issues.