At Millar McCall Wylie, we work closely with our clients and their accountants to help the client achieve smooth, tax-efficient, and legally compliant business succession. One increasingly popular route—highlighted recently by the BBC in the case of The Entertainer toy shop chain—is the Employee Ownership Trust (EOT).

What is an EOT?

An EOT is a specialist trust structure that allows a company to be owned indirectly by its employees. The trust holds a controlling interest (more than 50%) on behalf of all staff, ensuring they benefit collectively and equally.

Often used as an exit strategy for business owners, an EOT can provide a tax-advantaged and values-driven alternative to trade sales or management buy-outs.

The Benefits — for Owners, Employees, and the Business

1. 100% Capital Gains Tax Relief

When a qualifying business owner sells a controlling interest to an EOT, they can benefit from complete exemption from Capital Gains Tax (CGT) on the sale proceeds. This can be a significant advantage over other exit routes.

2. Tax-Free Bonuses for Employees

Employees of EOT-owned companies can receive annual income tax-free bonuses of up to £3,600 (though National Insurance still applies).

3. Cultural Continuity

An EOT enables the owner to preserve the company’s ethos, protect jobs, and maintain independence—rather than risk losing identity through a third-party sale.

4. Long-Term Stability

Employee ownership often leads to stronger engagement, better retention, and higher productivity—benefiting the business and its clients alike.

The Entertainer – A Real-World Example

In August 2025, The Entertainer—the UK’s largest independent toy retailer—announced it would transfer 100% ownership to its 1,900 employees via an EOT.

Founder Gary Grant said the move would protect the business’s values and secure its future while allowing staff to share in its financial success through profit-related bonuses. The deal demonstrates how EOTs can balance a founder’s legacy with tangible employee rewards, all within a tax-efficient legal framework.

How Millar McCall Wylie Works with your Accountant

Our role is to ensure the EOT is correctly structured, legally compliant, and optimised for tax efficiency—while supporting accountants in delivering a complete solution for our mutual client.

Why Partner With Us?

• Collaborative Approach – We work in tandem with accountants to ensure every legal and financial angle is covered
• Specialist Knowledge – Experience in advising on EOTs across sectors, from professional services to retail and manufacturing
• Clear Communication – We translate complex trust law and tax legislation into practical, client-friendly advice

If our clients are exploring succession options—or you believe an EOT could protect your business while unlocking tax benefits—we can help you deliver a joined-up, legally robust solution.