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🇪🇺 Europe · EuropeEmployee ownership trust (UK)
Also called: EOT
In one line
A UK structure where a trust holds a controlling stake in a company on behalf of all employees, enabling founder exits with tax benefits.
In plain English
An EOT lets a founder sell control to a trust that holds shares for the workforce, often free of CGT. It's an alternative exit route rather than an individual secondary.
If you were explaining it to a 5-year-old
A British way for a club's founder to hand the club to a trust that looks after it for all the helpers together.
Why it matters when you sell
If your company is EOT-owned or considering it, your route to value differs from a conventional share sale — worth understanding.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: UK Government / HMRC (gov.uk). Our definitions are written in plain English and kept evergreen — see the glossary methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.