Giorgio Pizzetti discusses the tax squeeze on Employee Ownerships Trusts with WealthBriefing
Giorgio’s article was published in WealthBriefing, 22 December 2025, and can be seen here.
Giorgio Pizzetti, Associate in our Corporate and Commercial department, argues that Employee Ownership Trusts (EOTs) are still one of the smartest exit options for founders.
Labour’s move to halve capital gains tax relief on sales to EOTs has unsettled many founders considering succession. Losing full Capital Gains Tax (CGT) relief is a significant shift, but it doesn’t make employee ownership any less viable. In fact, EOTs remain one of the most attractive and founder‑friendly exit routes.
Even at 50 per cent relief, the tax position is still far better than a typical third‑party sale, which usually triggers full CGT and can bring cultural upheaval and strategic uncertainty. For many founders, succession isn’t just about the final number, it’s about protecting the values, independence and identity of the business. An EOT offers continuity while giving employees a meaningful stake in the company’s future.
Read the full article on the WealthBriefing website [external link].