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Employee ownership

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Latest on employee ownership

Read our latest features and articles on employee ownership.
Net zero is a chance to say yes
  • Article
  • 03 Apr 2024
Andy Boteler is Director of Finance at Riverford Organic Farmers, is Senior Independent Director and Chair of Audit and Remuneration Committee at LungLife AI and is Chair of Audit Committee at Octopus AIM VCT PLC. Here, he shares his perspective on what it means to be an FD in a purpose-led, employee-owned organisation.
ICAEW welcomes proposed reforms to employee ownership trusts
  • Article
  • 03 Oct 2023
A tax regime was introduced in 2014 to allow company owners to sell their companies to trusts that are run for the benefit of the employees. Overall, the regime has worked well but several changes were proposed by HMRC in a consultation document to ensure the regime better meets its objectives.
Have your say: HMRC consultation on employee ownership trusts and employee benefit trusts
  • Article
  • 01 Aug 2023
Reforms to the tax treatment of EOTs and EBTs proposed in the paper are intended to focus the rules more effectively on the policy objectives of rewarding employees and encouraging more employee engagement. Another objective is to prevent tax advantages being obtained through the use of these trusts outside their intended purposes.
John Lewis review prompts employee ownership debate
  • Article
  • 06 Apr 2023
Despite John Lewis announcing plans to review its famous partnership structure, analysis suggests that the employee ownership model is alive and well
How can accountants help businesses transition to employee ownership?
  • Article
  • 16 Jan 2023
Employee ownership can offer succession-planning benefits. We hear from an architecture business that has recently transitioned to an EO model and the accountant who helped it through the process.
Employers cannot reimburse more than approved amount for business travel
  • Article
  • 13 Sep 2022
Government corrects previous statements on the amount that employers can reimburse in relation to business mileage for the use of the employee’s own car free of income tax and national insurance contributions (NIC).
The pros and cons of employee ownership trusts
  • Article
  • 15 Sep 2021
Interest in employee ownership is growing. Gerry Young and Tom Lethaby of RVE Corporate Finance, specialist advisers on employee ownership trust deals, talk about their experience of EOTs and the implications for CGT and M&A.
Exclusive What is open book management?
  • Article
  • 17 May 2021
We look at the management style that gives everyone in the business a say

Technical helpsheets

Exclusive Employee share trusts
  • Helpsheets and support
  • Nov 2022
Technical helpsheet issued to help ICAEW members to help members account for various ‘trust’ arrangements in relation to employee benefits under FRS 102.
Exclusive Share options under FRS 102
  • Helpsheets and support
  • Sep 2022
Technical helpsheet to issued to help ICAEW members account for the issue of share options to employees in exchange for their service under FRS 102.

eBooks

The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Exclusive Employment related securities and unlisted companies
  • eBook
  • 2023
  • Ken Moody
  • Spiramus
Explains how the employment related securities ('ERS') rules in ITEPA 2013, part 7 apply to employee share acquisitions. The main emphasis is on the Enterprise Management Incentives ('EMI') share option scheme, which is relevant mainly to unlisted companies due to the financial and other limits applicable.
Exclusive Employee share schemes
  • eBook
  • 2013
  • Karen Cooper
  • ICSA Publishing
Accounting treatment, tax relief and reporting obligations for employee share schemes.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Business press

The ICAEW Library & Information Service provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.
Exclusive Trusted strategy
  • Article
  • 01 Sep 2024
  • John Kirwan
Discusses the rise in popularity of using Employee Ownership Trusts (EOT) as a strategy for selling controlling stakes in motor retail businesses in the UK. This year has seen their use at businesses including Glyn Hopkin, Anderson Clark Motor Repairs and Helensburgh Toyota. Covers the advantages of EOTs together with practical considerations.
Exclusive Employee ownership trusts: An emerging strategy for HR leaders
  • Article
  • 29 Jul 2024
  • Derek Razo
Employee ownership has emerged as an effective strategy for attracting, engaging and retaining top talent. The author discusses the use of employee ownership trusts in the US and how they can provide opportunities to increase employee satisfaction, foster collaborative cultures and drive consistent business growth.
Exclusive More seats at the table: A legacy-minded Charlotte contracting family opts for broader employee ownership
  • Article
  • 01 Jul 2024
  • David Mildenberg
Blythe Development, a construction company based in Charlotte, North Carolina, has opted for employee ownership by selling the business to an Employee Stock Ownership Plan (ESOP). ESOPs have been around for a number of years in the US but still remain rare. The company's decision is discussed, including the family's wish to maintain control of the business and to gain an advantage in the retention and recruitment of employees.
Exclusive Inside an employee ownership success story
  • Article
  • 01 Mar 2024
  • Spencer Merrell
How employee ownership is creating millionaires at Central States Manufacturing in Utah. The company operates under an employee stock ownership (ESOP) model, meaning that every employee is paid in both salary and shared stock options. This model creates a culture of shared ownership and financial incentives, with the company currently having 42 millionaires among its employees. Central States also has a program called SHINE, where employees contribute to a non-profit fund that helps cover hardships for fellow employees.
Exclusive Unconventional exits: An increasing number of owners are selling their companies to ESOPs
  • Article
  • 01 Jan 2024
  • Cheryl Meyer
Why an increasing number of US business owners are choosing to sell their companies to Employee Stock Ownership Plans (ESOPs) as an exit strategy. The article discusses the benefits of ESOPs but also the potential risks, particularly in terms of financing and the credit-worthiness of the company.
Exclusive Moulding the future via employee ownership
  • Article
  • 01 Aug 2023
  • John Dormer
Employee ownership can help businesses retain skilled individuals and recruit new talent, whilst boosting productivity and profitability, says John Dormer. By using Employee Share Ownership Plans (ESOPs), employees can acquire equity in a business tax-efficiently. And if a business is being sold, owners may wish to sell it to their employees using an Employee Ownership Trust (EOT). The benefits and tax advantages of some of the most popular forms of ESOPs are explained.
More articles

Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on employee ownership. Use the links below to see what we have available to request in our Library catalogue (Libcat).
Employee share schemes
  • Library book
  • 2024
  • H. Wood, S. Diosi
  • LexisNexis
A brief digest covering various aspects of employee share schemes. The authors provide an overview of the types of schemes available, the common pitfalls, agreeing the valuation of the shares with HMRC, and preparing for and undertaking a due diligence exercise.
Employee share schemes: equity reward for private companies, 3rd ed.
  • Library book
  • 2024
  • T. Dalby
  • Claritax
This book provides practical guidance for employers and their advisers regarding the implementation of employee share schemes. The author explains the principles that apply when an employee acquires an equity stake in the employer's business, and details the tax reliefs afforded by different statutory schemes.
Employee share schemes, 9th ed.
  • Library book
  • 2024
  • M. Ife
  • Bloomsbury Professional
This book reviews key issues and techniques involved in establishing and operating share schemes. It includes worked examples to illustrate complex calculations and precedents to assist with implementing and understanding the operation of each scheme.
Employee-ownership trusts
  • Library book
  • 2022
  • D.Pett
  • Claritax Books
Accountants need to understand the different aspects of establishing a suitable employee-ownership trust, including satisfying the tax requirements and putting in place suitable corporate governance arrangements. This new volume brings together the technical and practical aspects, offering a vital guide for professional advisers in this field.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

External resources - Reports and guides

Co-op case studies
  • Website
  • Co-operatives UK Ltd
Case studies from UK co-op businesses, searchable by region, funding programmes and co-op type.
Employee Ownership Association resources
  • Website
  • Employee Ownership Association

The Employee Ownership Association publishes a range of resources including news, insights and case studies. Publications include:

Employment related securities bulletins
  • Website
  • HMRC
The latest HMRC bulletins for employers, giving information and updates on employment related securities, including tax-advantaged employee share schemes.
Ownership at Work - Publications
  • Website
  • Ownership at Work

Latest papers, guidance and research on employee ownership from the independent charitable think tank Ownership at Work. Includes:

Simply Buyout: A guide to employee buyouts and becoming an employee owned business
  • Website
  • Co-operatives UK Ltd, Employee Ownership Association
Detailed guide, with case studies, produced by Co-operatives UK in partnership with the Employee Ownership Association.
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