Over the last decade, the government has been keen to encourage more businesses to become employee-owned, with research indicating they can increase both profitability and productivity.

The government introduced tax incentives in 2014 that can provide for a zero per cent CGT rate on the sale of shares to an EOT and the ability for staff to receive an income tax free annual bonus of £3,600.

Another factor in the increased uptake of EOTs is likely to be the reduction in the tax relief from Entrepreneurs Relief for business owners during their lifetime. The 10% rate now only applies to lifetime gains up to £1M. It was previously £10M.

If you own a business and are thinking of selling all or part of your stake, and have a team of people involved in the management of that business, consider a sale to an Employee Ownership Trust. You can carry on working in the company and guiding it, but both you and your staff can potentially benefit from the significant tax incentives available.