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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11135
Experience:  30 years as a practising solicitor.
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What is an "Employee Succession Trust? please

Customer Question

What is an "Employee Succession Trust? please
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
It is a way of enabling shares to be held on behalf of employees within a separate entity, so it is a kind of discretionary trust. There are tax incentives as the government is keen to encourage employee ownership of businesses.
It allows the owner of a business to create an exit strategy and achieve a price for the business which is then controlled by its employees via a trust.
Ther are capital gains tax incentives and also employees can be paid tax free bonuses up to £3600 each year.
A good example of a business run this way is ***** *****.
Happy to discuss further.
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