Valuing a private company isn’t straightforward. Unlike listed companies, where a share price is publicly available at any moment, private company valuations rely on financial analysis, comparable transactions, and methodology that HMRC will actually accept. This guide sets out how it works, what’s required for different situations, and what can go wrong if it’s done poorly. What Is a Company Valuation? A company valuation is the process of determining the economic value of a business as a whole. It’s commonly required for: Share issues and transfers Employee ownership schemes Business sales or acquisitions Tax and HMRC reporting purposes Because private
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Monthly Archives September 2026
Employee Ownership Trusts Explained: Tax, Valuation and How the New Rules Work
An Employee Ownership Trust (EOT) is a government-approved structure that allows qualifying shareholders to sell a controlling interest in their company to a trust that holds it for the benefit of all employees. It remains one of the most tax-efficient exits available to UK business owners, even after the November 2025 Budget, though the numbers have changed and it’s worth understanding exactly how. How an EOT Works The owner sells a majority stake to a trust rather than to a third-party buyer. The trust is run by appointed trustees, who have a legal duty to act in employees’ best interests.
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Are you considering an Employee Ownership Trust (“EOT”) for your company?
Thinking of selling your business? An EOT remains one of the most tax-efficient exits available to UK business owners, even after the November 2025 Budget. The EOT has become the fastest-growing ownership model in the UK, with around 2,500 companies now owned by an EOT and approximately 500 more transitioning each year. Designed for succession planning, EOTs protect business continuity, preserve company culture, and drive long-term employee engagement. What is an EOT? An EOT is a government-approved structure that enables qualifying shareholders to sell a controlling interest in their company to a trust that holds it for the benefit of
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