Introduction: When selling your business to an Employee Ownership Trust (EOT), it’s vital to ensure the transaction is tax-compliant, properly structured, and defensible under scrutiny. One of the most
effective ways to protect the deal from future tax challenges is by securing the appropriate HMRC
clearances in advance.
At EotOwl, we provide expert tax support in preparing and obtaining the necessary statutory and
non-statutory clearances from HMRC. These include confirmation that the Transactions in Securities
Income Tax anti-avoidance provisions would not apply to the sale transaction, and that deferred
payments would not be taxed as disguised remuneration. We manage the process from start to
finish, ensuring your sale to an EOT is not only effective, but robust under HMRC review.
Why It Matters: While many EOT transactions qualify for generous tax reliefs, including 100% CGT exemption, those reliefs are only available when all tax law conditions are met.
That’s why advance clearance is so important. By securing HMRC’s written confirmation before the transaction completes, you protect your position and significantly reduce your exposure to tax risk.
The clearance does not cover all aspects of an EOT transaction, but it does certainly help mitigate
risks, and is therefore strongly advisable.
For many of our client’s, obtaining clearance is not just a technical step, but it’s a critical element in
proceeding in a fully transparent manner, which eliminates tax uncertainty where possible.
Secure your EOT sale with expert-led HMRC clearance.
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