[7] Research into EOT owned companies also shows that employee ownership works well to meet the aspirations of the millennial generation, and reveals that millennials value many characteristics of the employee ownership business model, such as profit sharing and personal development, more than previous generations did.
[9] In the 2024 Autumn Budget, the UK government introduced changes impacting Employee Ownership Trusts (EOTs).
Key reforms include tighter regulations preventing former owners from retaining control post-sale, mandates for UK-resident trustees, and an extension of the relief clawback period.
These changes aimed to enhance EOTs as a succession model by ensuring fair tax practices and promoting genuine employee engagement.
In 2013, the Government announced that following the findings of the Nuttall Review, it had decided to introduce two tax reliefs to encourage, promote and support indirect employee ownership structures.
The tax reliefs also promote awareness of the sector and increased the attractiveness of indirect employee ownership structures for businesses which might be considering converting.
This means EOT beneficiaries must either all receive an equal amount, or their benefit may vary by reference to their remuneration, length of service, or hours worked.
In 2014, the international design firm Wimberly Allison Tong & Goo (WATG) became the first US company to create employee ownership through an English EOT.
Leadership wanted to avoid the cost and time requirements of creating and maintaining an ESOP, including legal work, administration, and valuation.
[23] The founders specifically wanted to cement the long-term vision of the company so that it could continue to benefit customers, employees, and the community.