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 all employees.
Business owners genuinely like the idea of transitioning their business to an employee-owned model for rewarding employees, and it remains the most tax-efficient option, one of the most significant drivers behind the growth of the EOT being the favourable tax treatment.
For disposals completed on or after 26 November 2025, 50% of the seller’s gain is exempt from Capital Gains Tax under the Finance Act 2026. That compares with up to 24% on a conventional trade sale, making the EOT route roughly twice as tax efficient as a standard disposal, alongside its succession, culture and employee engagement benefits.
Why introduce an EOT for your company before the Autumn Budget 2026?
Although the relief remains substantial and continues to make the EOT model attractive for owners of profitable, well-established businesses, given the current economic climate, and the unknown contents of the forthcoming Autumn Budget 2027 that is scheduled for Wednesday 28 October, 2026, the future of the favourable tax regime for the sale of company shares to an EOT is considered to be vulnerable to change and, therefore, the continuation of the EOT in its current tax-efficient form for new EOT arrangements after the Budget is indeed uncertain.
For this reason, business owners and company shareholders considering the introduction of an EOT are advised to think about an implementation as early as possible and should not overlook the opportunity to act now to start the conversation, understand the benefits and assess whether an EOT could secure the future of their business.
If you are considering an EOT, please feel free to contact David Craddock at David Craddock Consultancy Services, specialists in all matters EOT, employee share schemes and share valuation, for an initial no-cost introductory consultation. We are always happy to discuss your case with you on a confidential basis.