Sellers can sell shares to an EOT free from capital gains tax.

Employees can be paid certain bonuses free from income tax (up to £3,600 per year).

However to be a qualifying EOT the trust must hold a majority (more than 50%) of the shares in the company.

An EOT can be used with other tax incentivised share schemes like enterprise management incentive (EMI) options and share incentive plans (SIPs).