Basis Period Reforms: Changes To Business Profit Taxation

What really happens when a business moves to an EOT? Join Nick and Ryan for the latest episode as they explore the practical issues business owners can face once they have made the move. 00:00 Introduction to The Tax Hour and Employee Ownership Trusts 01:12 What is an EOT and why do businesses use one? 02:34 EOTs as a business model vs a tax-saving scheme 03:27 How EOTs are structured and how employees benefit 04:51 The financial benefits for employees 06:14 Selling an EOT-owned business: are employees better off? 07:26 How the 2025 changes affect the tax position 09:03 Disqualifying events and the four-year clawback period 11:46 What happens when an EOT-owned business is sold? 14:36 Are EOT employee benefits enough to retain key staff? 15:27 Alternative incentives for senior management 16:19 Life after deferred consideration is repaid 17:45 Trustee independence and governance requirements 19:40 Key EOT qualifying conditions and employee participation 21:10 Employee turnover and the risk of breaching EOT conditions 22:17 The four-year rule: benefits and risks for vendors 23:58 UK trustee residence requirements 25:32 Market value requirements and business valuations 27:07 The EOT sale process and HMRC clearances 28:29 Do EOT transactions need more than one valuation? 29:37 Funding EOT purchases and distributions relief 32:00 Using EMI share options alongside an EOT 33:26 Can minority shareholders sell their shares to an EOT? 35:01 The tax challenges of buying additional shares 36:32 How can an EOT fund a further share purchase? 38:24 Company law restrictions and funding difficulties 39:44 Using an employee benefit trust as an alternative 40:24 Could an EOT structure work like a management buyout? 42:13 Business restructures, property and ring-fencing risk 44:39 Planning exit routes for minority shareholders 45:51 Is an EOT still a good succession option after 2025? 46:38 Paying CGT when consideration is deferred 47:34 What happens when vendors write off deferred consideration? 48:15 How the 2024 and 2025 reforms have changed EOTs 49:04 The history of EOTs as a tax-free exit route 51:03 The 12% CGT rate and the risk of disqualifying events 53:22 The challenges of unwinding an existing EOT 54:09 Why selling out of an EOT can be difficult 55:15 EOTs and private equity investment 56:21 Corporation tax deductions for employee share schemes 57:42 Corporate trustees and EMI tax relief 58:47 How HMRC views EMI valuations in EOT businesses 1:00:12 The tax implications when an EOT-owned business is sold 1:01:39 HMRC enquiries, readily convertible assets and employee tax 1:04:20 The impact of corporate trustees on employee share schemes 1:05:21 Alternatives to EMI: growth shares and other incentives 1:06:18 Planning for emerging EOT tax issues 1:07:01 Key takeaways: making EOTs work for the right business 1:08:02 Quickfire round: improving EOTs and spotting red flags

In this episode of The Tax Hour, our host Nick Wright is joined by Holly Threlfall, Partner and Head of corporate and commercial of Wilson Browne Solicitors. Together they explore the legal and commercial realities of selling a business, and why early preparation is critical to protecting value and avoiding costly surprises during a transaction. 00:00 Introduction 00:00:40 Why You Should Start Planning a Business Sale Years in Advance 00:02:30 Who Should Be on Your Deal Team? 00:12:35 How to Prepare Your Business Before Going to Market 00:15:10 Warranties, Disclosures & Avoiding Expensive Mistakes 00:18:35 Tax Planning That Could Save Hundreds of Thousands 00:20:40 Getting Your Business Structure Right 00:21:45 What Buyers Look for During Legal Due Diligence 00:24:55 Warranties, Indemnities & Purchase Price Reductions 00:38:15 Deal Fatigue: Why So Many Sales Become Stressful 00:40:35 Earn-Outs, Completion Accounts & Negotiating the Final Deal 00:51:15 Finding a Buyer & The Typical Business Sale Process 00:52:20 Managing Expectations From Heads of Terms to Completion 00:53:10 What Happens After the Deal Completes? 01:04:17 Final Takeaways

In our latest episode of The Tax Hour, Nick is joined by Bill Dodwell, former Head of Tax Policy at Deloitte and former Tax Director of the Office of Tax Simplification (OTS). Together, they explore what tax simplification really means and whether it is genuinely achievable within a modern, globalised economy. Key themes include: -What simplification actually is -Why the system is complex -The role of the OTS -Three routes to simplification -The importance of tax education -Whether National Insurance and Income Tax could ever be merged

In this episode of The Tax Hour, our host Nick Wright welcomes Ray McCann, Consultant, former President of CIOT and former Assistant Director of HMRC, to discuss the recent Independent Loan Charge Review 2025. 00:00 Introduction 00:35 What Is the Loan Charge? 09:25 How Loan Schemes Worked 13:49 Why the Government Introduced It 19:26 Where the Loan Charge Went Wrong 23:08 The Human Cost & Financial Impact 28:39 Promoters, HMRC & Responsibility 36:03 Ray’s Recommendations 53:54 Final Verdict: Was This the Best Possible Outcome?

Join Nick Wright and Emma Chamberlain for an expert discussion on wealth taxes in the UK. Emma, a barrister and visiting professor at Oxford and the LSE, was a commissioner for the 2020 Wealth Tax Commission. This episode explores why the Commission ultimately recommended against annual wealth taxes, the challenges of implementing a one-off wealth tax, and how the UK's approach to taxing capital compares internationally. They discuss the need for comprehensive reform of capital taxes (CGT, IHT, council tax) rather than piecemeal changes, and why political consensus is essential for sustainable tax policy. Key insights include: Key topics include: -Intro -Origins of the Wealth Tax Commission -Historical Attempts and Lessons Learned Exploring Denis Healey’s 1970s wealth tax plans and why early efforts failed. -The Covid Context and Public Perception -Defining a Wealth Tax -Annual vs One-Off Wealth Taxes -Broader Tax Reform & Capital Taxes Discussion -The Need for Systemic Reform Challenges -Fairness and Tax Equity -Public Perception, Avoidance & Final Reflections Essential listening for understanding current debates about wealth taxation and capital tax reform in the UK. 🔗 Resources mentioned: Wealth Tax Commission website: https://www.ukwealth.tax/ Upcoming LSE event with Emma Chamberlain: 1st December: https://www.pumptax.com/events/emma-chamberlain-speaking-at-lse-on-the-wealth-tax-commission-5-years-on/