Deb Oxley – EOA Statement on the 2021 UK Budget
“There was a lot to welcome in this important Budget in terms of continuation of pandemic financial support, a programme for economic recovery and investing for the future. However, we do recognise that for some members, the planned changes to corporation tax will be a concern.
“While we heard that there was a freeze on an individual’s annual exempt amount for Capital Gains Tax, we still wait to hear the detail of other possible changes and initiatives around the UK tax regime later this month.
“We hope March 23rd will herald an end to the uncertainty about a possible rise in CGT following the recent review carried out by the Office of Tax Simplification. While there has been nothing to suggest that this review would affect the Employee Ownership Trust, the uncertainty risks unintended consequences of driving interest in the EOT for tax reasons, rather than being part of a transformative process to becoming employee owned.
“This could have the unintended consequence of affecting the reputation of employee-owned businesses which are evidenced as offering significant benefits to the individual, the business and by rooting jobs in regions for the longer term. The EOA will continue to make sure the government is aware of the successes of the EOT and its relevance in helping the UK to Build Back Better and create a more inclusive economy.
“Meanwhile, the EOA welcomes the Community Ownership Fund as a positive step in the government recognising the value of shared ownership in supporting thriving communities. This bodes well for this recognition being more widely applied to businesses, where employees having a stake and a say in the business in which they work helps support thriving businesses.
“We also welcome the new Help to Grow initiative for SMEs which builds on the great work of Be the Business and is aimed at providing the development of management and digital capability within SMEs. While we feel many employee-owned businesses are ahead of the curve on good leadership, we know many would benefit from help with management and digital development.”
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