Don’t get caught out by the Budget. Are you considering an Employee Ownership Trust (“EOT”) for your company?

Employee Ownership Trust Advisory

Sell your business on terms that protect its future, and pay significantly less tax doing it.

We guide UK business owners through every stage of an Employee Ownership Trust sale: feasibility, valuation, trust structuring, tax planning, and employee communication, backed by David Craddock’s direct working relationship with HMRC.

📞 Book a free initial consultation

What You Get

  • Feasibility assessment, a clear answer on whether your business qualifies, before you commit to anything
  • Independent, HMRC-defensible valuation, the price the trustees can properly pay, documented to withstand scrutiny
  • Trust structuring and implementation, legal formation and trustee appointment, built to survive the four-year clawback window
  • Tax planning and compliance, modelled against the 2026 rules, including the interaction with Business Asset Disposal Relief and any existing EMI arrangements
  • Employee communication strategy, so your team understands what’s changing and why
  • Ongoing governance support, keeping the trust compliant well after completion

Why Choose David Craddock as Your Employee Ownership Advisor

As one of the UK’s most experienced EOT advisors, David Craddock has over 35 years advising on employee share trust structures and serves as Technical Secretary to the Share Valuation Worked Examples Group, which meets quarterly with HMRC. That means the Employee Ownership Trust advice you get comes from someone who sits in the room where HMRC’s approach to these questions is actually set, not someone interpreting it from the outside.

The Tax Position Right Now

For disposals completed on or after 26 November 2025, 50% of the seller’s gain is exempt from Capital Gains Tax, an effective rate of around 12%. That’s roughly half the rate of a standard trade sale, at 24%.

On a £5 million gain, that’s the difference between paying around £1.2 million in tax on a trade sale, against £600,000 through an EOT: about £600,000 retained, before counting the value of continuity and tax-free employee bonuses afterwards.

Full breakdown and the earlier Budget rules →

Is This the Right Route for You?

An EOT tends to suit:

  • Founders looking to retire without a clear buyer in place
  • Family businesses with no obvious successor
  • Owners who want to reward long-serving staff
  • Companies that value long-term stability over a maximised sale price

It’s not the right fit for every business. Proceeds are usually paid over several years from company profits rather than as a lump sum, and the business must be a qualifying trading company with a majority stake available to sell. We’ll tell you honestly during the feasibility review if it isn’t a good match.

How We Work Together

  1. Feasibility review
  2. Independent valuation
  3. Trust structuring and trustee appointment
  4. Transaction financing
  5. Employee engagement
  6. HMRC compliance sign-off
  7. Ongoing governance

Start Your EOT Journey

👉 Book a consultation with our EOT specialists today

Want to understand the full mechanics first? Read our complete guide to Employee Ownership Trusts →

 

DAVID CRADDOCK CONSULTANCY SERVICES

★ Expertise and Experience ★