EOT Deferred Consideration

EOT Deferred Consideration

Craig Simpson, Tax Partner at Bates Weston, considers the implications of using deferred consideration to pay outgoing shareholders when an Employee Ownership Trust (EOT) is created.

EOT Share Valuation

EOT Share Valuation

The tax costs of overvaluation are significant should HMRC consider the transaction overvalued. Getting an independent valuation early in the EOT thought process is important.