Taxation of Employee Ownership Trusts and Employee Benefit Trusts
Read the full outcome
Detail of outcome
The government has published a summary of responses to the consultation on the taxation of Employee Ownership Trusts and Employee Benefit Trusts.
The consultation ran from 18 July 2023 to 25 September 2023. 98 written responses were received and meetings were held with interested parties. The government is grateful to all who responded.
Following consideration of the consultation responses, the government is introducing a package of reforms to the taxation of Employee Ownership Trusts and Employee Benefit Trusts. These reforms will prevent opportunities for abuse, ensuring that the regimes remain focused on encouraging employee ownership and rewarding employees.
Original consultation
Consultation description
This consultation invites views on proposals to reform the tax treatment of two types of employee trusts: Employee Ownership Trusts and Employee Benefit Trusts.
-
an Employee Benefit Trust (EBT) is a trust set up for the benefit of employees or office holders of a company or group of companies
-
an Employee Ownership Trust (EOT) is a specific type of EBT whereby the trustees own and control the company for the benefit of all of the employees
The aim of the consultation is to ensure that the tax regimes for EBTs and EOTs remain focused on the targeted objectives of rewarding employees and encouraging employee ownership, whilst preventing tax advantages being obtained through use of these trusts outside of these intended purposes.
HMRC welcomes discussions with interested parties. If you would like to meet with policy officials, please contact HMRC.
Documents
Updates to this page
Last updated 30 October 2024 + show all updates
-
Updated to include the summary of consultation responses.
-
First published.