What the research says
HMRC recently published new research on the impact of Employee Ownership Trusts (EOTs), based on in-depth interviews with 30 businesses that transitioned between 2014 and 2022.
🔗 Read the summary from EO Sector
Key findings:
- The tax incentives — Capital Gains Tax relief, Inheritance Tax relief, and tax-free employee bonuses — are key drivers.
- Businesses reported stronger employee engagement and smoother succession processes.
- Where staff engagement was high from the start, the transition was more successful.
- Where communications were lacking, confusion about the EOT’s purpose slowed progress.
The report also highlights a need for more support after the transition, especially around trustee roles and employee understanding.
Why this matters in Northern Ireland
EOTs are still relatively new in Northern Ireland, but interest is growing.
Several NI-based businesses have already transitioned including:
- White Ink Architects
- Relinea
- S&W Wholesale
- People 1st
These businesses chose employee ownership to safeguard their legacy, protect jobs, and keep decision-making local. Their experiences show this is a practical model for NI firms of different sizes and sectors.
How Employee Ownership Ireland can help
Employee Ownership Ireland (EOI) exists to support businesses before, during, and after a move to employee ownership. Here’s how:
- Feasibility support: We help you understand if employee ownership is the right path.
- Peer connections: We link you with other local business leaders who’ve already made the transition.
- Adviser network: We work with accountants, solicitors, and trustees who understand the EOT process.
- Training and events: From roadshows to member-only sessions, we provide practical insights and community.
- Resources and templates: Access to guidance materials tailored to the Northern Ireland context.
- Advocacy and policy: We work with government and funders to make employee ownership easier and more visible.
If you’re thinking about succession planning or employee engagement, now is a good time to explore the EOT model — with EOI by your side.
What NI businesses should focus on
If you’re considering or advising on succession, here are key lessons from the research:
- Engage staff early. Transparent communication builds trust and improves outcomes.
- Structure governance well. Balanced trustee boards help with stability and confidence.
- Understand the incentives. The tax benefits are real — but only work with the right advice.
- Think long-term. EOTs are about continuity, resilience, and collective success.
Questions to consider
- Is your current succession plan aligned with your company’s values?
- Could your employees help carry the business forward — if given the chance?
- Are you accessing all available support to explore your options?
HMRC’s research confirms that EOTs can deliver. With the right support, Northern Ireland businesses can use this model to secure their future and share success more widely.