Ben Watson
Ben is Head of Employee Incentives at TLT.
He specialises in all aspects of employee incentives and employee ownership and is an expert on all associated legal and tax matters.
Ben has been advising companies and management on share scheme matters for more than twenty years. He has implemented arrangements for all types of companies, from start up to FTSE 100 and has led the advice on some of the UK’s largest and most recognised share plan and employee ownership matters. He has a wide understanding of the market and of the associated corporate governance issues.
He is independently recognised as a leading individual nationally for employee share scheme matters and is ranked in Band 1 UK-wide for employee ownership matters, with clients describing him as “an expert in his field” and “very patient in explaining the legal jargon”.
Practice Area
Panel
- Contributing Author
2 Contributions by Ben Watson
PRACTICE NOTES
Disposals to Employee Ownership Trusts: UK legal, tax and transactional guidance on structure, funding, valuation, governance, risks, HMRC clearances and disqualifying events, including changes in Finance Acts 2025 and 2026.
What is an employee ownership trust
An employee ownership trust (EOT) is a distinct form of employee benefit trust (EBT) that must satisfy defined statutory conditions. EOTs were brought in by the Finance Act 2014, alongside particular tax advantages made available both to companies owned by an EOT and to individuals who transfer shares to an EOT. Where the strict legal requirements are not met in relation to the EOT, those tax reliefs will not apply. These statutory thresholds and conditions are central to qualification for any associated tax reliefs available under EOTs. For more information on EOTs and the legislative tests they are required to meet, see Practice Note: Employee ownership trusts. For guidance on pitfalls and frequent errors to watch for when establishing and running an EOT, see Practice Note: Pitfalls of setting up and operating an employee-ownership trust. EOTs can provide a robust route for succession planning and a substitute for more conventional exit options, including a third-party trade sale, or a management or private equity-backed buy-out. However, although the potential tax reliefs available to individuals who dispose of a controlling interest to an EOT can be highly attractive, moving to an EOT structure can be a...
Share Incentives
PRACTICE NOTES
Employee ownership trusts in the UK: statutory compliance, funding, valuation and governance pitfalls (including trustee independence), disqualifying events and employee incentives (2024–2025 reforms)
What is an employee ownership trust?
An employee ownership trust (EOT) is a distinct type of employee benefit trust that must satisfy specific statutory conditions. The EOT framework was introduced by the Finance Act 2014, together with certain tax advantages available to companies owned by an EOT and to individuals who dispose of shares to an EOT. If those statutory tests are not met in relation to the EOT, these reliefs will not apply. For general information on EOTs, including an overview of the key features and tax reliefs, see Practice Note: Employee ownership trusts. For more on the issues and considerations when selling a company to an EOT, including the necessary documentation and the overall sale process, see Practice Note: Sale of a business to an employee ownership trust. For guidance on a sale by the trustees of an EOT of a company already held within that EOT, see Practice Note: Sale of a company out of an employee ownership trust.
What are the pitfalls?
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Share Incentives
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