Pete Wilmer
Senior Partner & Head of Corporate Finance
On 26th November 2025, Chancellor Rachel Reeves delivered her Autumn Budget Statement.
She announced a reduction in Capital Gains Tax relief available on qualifying disposals to employee ownership trusts from 100% of the gain to 50%. This will be legislated for in Finance Bill 2025/26 and is effective immediately.
The Employee Ownership Association are currently lobbying HMRC to confirm details of when this tax needs to be paid. Further clarification is set to be announced in the coming weeks/months.
This change may raise concerns for business owners considering an Employee Ownership Trust, however, the change does not affect many of the key benefits that Employee Ownership Trusts continue to offer. EOTs remain a genuine succession route for business owners, and one which rewards staff, preserves culture, and protects a company’s long-term independence.
If you are considering an EOT, and have any questions about how the Chancellor’s announcement may impact you, do not hesitate to contact us.
Our EOT experts have been helping businesses transition to employee ownership for over a decade, so please contact us on 0114 266 7141 or visit the Employee Ownership Trust section of our website.
If you would like to see anymore details we would recommend visiting the Employee Ownership Associations website.
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