Business Guide - brought to you by APL Media • Wednesday 15 February 2023 Why an EOT is a major opportunity Shorts’ team of chartered accountants are award-winning specialists in EOT transactions


tax charge on the disposal under the right conditions. Furthermore, an EOT provides


certainty of exit, free from the whims of trade buyers. You’re also guaranteed to receive the full market value of your shares, subject to deferred consideration. The Employee Ownership


ANDY RYDER


An Employee Ownership Trust (EOT) enables a company to become owned by its employees. It’s a trust set up by existing company owners for the benefit of all employees. EOT transactions are growing in


popularity as more business owners grasp the unique benefits an EOT offers them, their business and their team. Selling a business to an EOT means


safeguarding your legacy as a business owner, rewarding your team for their work and service and also benefitting personally from a 0% capital gains


Association* asserts that growth in the UK employee-owned sector can be credited to improved profitability, sustainability, staff motivation and retention, with a stronger commitment to social and corporate responsibility. Shorts’ team of chartered


accountants are award-winning specialists in EOT transactions who have helped several major businesses transition to employee ownership via this method. These clients have described the


EOT process as a win-win, citing a notably easier negotiation process and with fewer legal obstacles than a trade sale. They have also described improved


attitudes and motivation among staff. The team aren’t only rewarded for their work with co-ownership of the business, they’re also entitled to tax- free annual bonuses of up to £3,600 when the right conditions are met.


Selling a business to an EOT means safeguarding your legacy as a business owner and rewarding your team for their work and service


If a business is acquired by


a competitor, concerns about restructuring or redundancy may grow among staff. An EOT transaction provides continuity for the business and all-important security for the staff during a period of change. An EOT presents an enormous


opportunity not just for the exiting business owners, but also for the team that will remain. It’s important to note, however, that an EOT transaction may not be the optimal course of action for every business. There are lots of factors for


an owner to consider in an exit strategy. By discussing your goals with a qualified corporate finance specialist, you can ensure your exit strategy is appropriate and beneficial, whether via an EOT or a different method.


Get in touch


Contact Andy Ryder, Corporate Finance Partner at Shorts, to discuss Employee Ownership Trusts, mergers and acquisitions, corporate fundraising and other business opportunities. E: a.ryder@shorts.uk.com


Finance & legal • 5 ADVERTISEMENT FEATURE


SHORTS CORPORATE FINANCE TEAM


*https://employeeownership.co.uk/what-is-employee-ownership/employee-ownership-benefits/


ADVERTISEMENT FEATURE Business rates: plan, budget and save Arrange a review now to ensure you don’t overpay for the next three years


compliance obligations, which will be introduced during the 2023 revaluation and require annual notification of event changes to occupied property.2


1 April 2023 -


Check your new business rates are correct


SAVE Reviewing current and future assessments now offers businesses the opportunity to plan, budget and identify cost savings to 31 March 2026 (end of the 2023 revaluation). The current economic conditions


PLAN Businesses have until 31 March 2023 to review and potentially recoup business rates dating back to 1 April 2017, if their building assets are currently unfairly valued (based on market evidence), are subject to refurbishment or are disrupted by roadworks or neighbouring works.


BUDGET New rates bills will land in March for the forthcoming revaluation (1 April 2023), introducing widespread changes to liabilities across all commercial property assets.


The impact will vary across


sectors; the industrial sector will see large increases with a total sector value rise of 27%1


. Properties valued


on a cost-based approach, such as hospitals, schools, universities and sporting venues will also face large increases. Retailers will mainly benefit from decreases and immediate savings due to the abolition of downwards transitional relief caps. Offices will largely face


1 2


increases, but not as sharp as those in the industrial sectors and those sectors with cost-based valuations. The new bills will reflect opinion


of rental values as at 1 April 2021 in England and Wales (1 April 2022 in Scotland). As evidential data will be limited for some sectors, it is imperative to review and assess business rates liabilities. Businesses should also be aware of the new ratepayer


have motivated many businesses to focus on saving business rates costs and understand the real quantum of liabilities in advance, so these can be factored into budgets with confidence.


ACT NOW Add a business rates review to the top of your to-do list to ensure you don’t overpay over the next three years and you understand your new compliance obligations. Evelyn Partners offers business rates advice across a wide range of commercial assets.


COLETTE HENSHAW


For more information Visit: evelyn.com/bus-rates/


Colette Henshaw, Partner and Head of Business Rates, Evelyn Partners, 45 Gresham Street, London EC2V 7BG T: 020 7131 8513 E: Colette.henshaw@evelyn.com


Non-domestic rating: Reval 2023 draft list statistical commentary and background information - GOV.UK (www.gov.uk). Figure 18: Percentage change in rateable value by rateable value interval, industrial sector, England and Wales. Source: NDR revaluation 2023 (draft list) published November 2022 table 3.2).


Compliance obligations refer to the intended provision of information and the duty to notify as set out in the Business Rates Review: Technical Consultation 30 November 2021 Business Rates Review: technical consultation - GOV.UK (www.gov.uk)


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