Budget Update on EOT Tax Relief: A National Opportunity at a Crossroads, Says My Group CEO

Budget Update on EOT Tax Relief: A National Opportunity at a Crossroads, Says My Group CEO

November 5, 2025

FOR IMMEDIATE RELEASE – 27/11/2025 – Shrewsbury, Shropshire

Budget Update on EOT Tax Relief: A National Opportunity at a Crossroads, Says My Group CEO

Employee ownership remains one of the UK’s fastest-growing business succession models, but changes announced in the recent UK Budget updating the tax relief available for Employee Ownership Trusts (EOTs) could temper founder take-up if not viewed within the wider economic picture.

Since launch, the EOT model has supported thousands of UK business owners in enabling an employee-benefitting succession while helping founders balance commercial viability. Historically, the relief itself has been a decisive factor in closing the deal.

According to David Cartlidge, CEO of My Group, parent company of My Staff Shop, My Health Xtras and Mynurva, the national conversation must broaden beyond tax mechanics and refocus on the economic and cultural value of employee ownership:

“It feels like the wider benefits of employee ownership have been missed. EO businesses tend to be more productive, more resilient and more focused on doing the right things for the long term. People stay longer, feel more connected to the business and share directly in its success through tax-free bonuses and, over time, a genuine stake in the value they help create. All of that supports spending, stability and, ultimately, tax receipts.”

“Most founders who look at an EOT are not doing it purely for tax reasons, but the relief has always helped make the numbers work. It can be the thing that tips the balance. The new version still helps, but it is smaller and it brings new CGT and cash-flow considerations into the mix. That will make some founders hesitate.”

“The bigger question is what happens instead. If fewer businesses choose the EOT route, more will end up in trade sales, mergers or debt-fuelled structures. Those options can work, but don’t always protect the culture, stability or long-term thinking that an EOT encourages. And it means fewer employees having the chance to feel a sense of ownership and share in the value they help create.”

“If that slows the growth of EO in the UK, it would be a real missed opportunity. We should be widening the path, not narrowing it.”

With employee ownership businesses statistically more productive, resilient and retention-driving, My Staff Shop warns that narrowing the relief may unintentionally widen the appeal of alternative exits, including trade sales, mergers and debt-structured buyouts – some of which carry greater cultural and cash-flow risk for organisations.

Cartlidge added: “EO isn’t good for workplaces alone – it’s good for the economy. When employees stay longer, feel valued and benefit financially, that increases spending stability and supports tax receipts in a sustainable, long-term loop.”

As an employee-owned business supporting employee engagement across hundreds of UK organisations, My Staff Shop believes the key is not whether the relief exists but how the UK positions EO as a productivity and retention strategy, not a tax niche.

My Staff Shop will continue advocating for a founder-friendly, employee-first path that preserves culture, connection and long-term economic contribution.

ENDS

My Staff Shop is a UK company specialising in the provision and communication of employee benefits, Reward & Recognition, Wellbeing Solutions, and Discounts & Savings. Founded in 2011, with its head office based in Shrewsbury, Shropshire, it now provides its services to private and public sector employers representing over 240,000 work colleagues. Through its sister companies My Health Xtras, Mynurva, and Gee 7 Wealth Management it also provides employees with access to a range of low cost health and hospital cash plans, mental health counselling and support, neurodiversity assessment, and IFAs.
www.mystaffshop.com.