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 Deferred Consideration
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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.
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.
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