Editorial team AccountingWEB.co.uk
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Any Answers Answered: Holdover relief and EOTs

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This month, TaxTV's Tim Good and Giles Mooney tackle two questions from Any Answers on holdover relief and employee ownership trusts (EOTs).

8th Oct 2021
Editorial team AccountingWEB.co.uk
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To view the full questions and AccountingWEB reader answers click on the links below:

Holdover relief on share transfer to a relative

The first question comes in from AccountingWEB reader msaid and they have a holdover relief query 

"A client wishes to transfer some of  his 51%  shareholding ( the other 49% is held by his wife ) in his trading company to his son. The shares of the company are valued at £500,000 and the market value of the shares to be transferred is £85,000. Can father claim holdover relief? And can they transfer to utilise their annual exemption with the rest being covered by holdover?"

Employee ownership trusts

For the second question, Giles and Tim explore the complexities of employee ownership trusts (EOTs). Any Answers contributor Justin Bryant said: "Everyone knows [EOTs] are being abused for CGT avoidance. Now, thanks to CIOT, the cat is out of the bag and they even spell out how to do it for those not in the know." 

Mooney and Good recognise that EOTs are very useable but as the CIOT points out, there are weaknesses in the EOT legislation that is being exploited by tax abusers. 

For the latest episode of TAXtv visit PTP Interactive.​ TAXtv is a monthly tax update programme available as an annual subscription, (11 issues plus budget editions) to view online, download from the internet or watch on DVD.

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