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Employee Ownership Trusts: Introduction

HMRC’s technical introduction to Employee Ownership Trusts as a type of Employee Benefit Trust under UK tax rules.

Source: HM Revenue & CustomsAdded June 12, 2026Published 2016
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Why it matters

For UK EOTs, tax treatment and statutory requirements are central to the model, so a primary government reference belongs in any serious EOT library batch.

Best for

Advisors, researchers, and founders who need a technical UK reference point rather than a general explainer.

This is HMRC's technical introduction to Employee Ownership Trusts within its Inheritance Tax Manual. First published in 2016 and updated by HMRC on April 7, 2026, it explains where EOT qualification sits in the Capital Gains Tax, Income Tax, and Inheritance Tax framework and links into the detailed manual provisions.

It is a current primary-source entry point, not a complete transaction guide or a beginner explanation. EOT and employee-benefit-trust rules changed for relevant events from October 30, 2024, with later changes to disposal relief applying from November 26, 2025; an actual transaction requires the linked current HMRC provisions and qualified UK tax and legal advice.

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