Employee ownership trusts: a policy that works
It has been heartening to read reports about the way that the Entertainer toy shop business is to be transferred to an employee ownership trust (EOT).
These arrangements have been with us for more than a decade: it took a while for them to gather momentum but they now have an important role in business planning. We have published in the magazine several articles on EOTs recently and I am sure the publicity that the Entertainer transaction has generated will spur more interest in their use.
In my view this is a good example of a tax incentive which has been well designed and which works as it was intended. Too often incentives have led to abuse or have been so hedged round with restrictions that they are impossible to use. I don’t need to list examples here – readers will have their own favourites.
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