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EOT Tax Saving Calculator

Selling a controlling interest to an Employee Ownership Trust (EOT) is no longer CGT-free. From 26 November 2025, only 50% of the gain is relieved; the other 50% is chargeable now at the standard CGT rate, with BADR and Investors' Relief blocked on that taxable slice. Enter your numbers to see the CGT under the current rule, contrasted with the old (pre-26 Nov 2025) 100% relief position, and with a straight trade sale using BADR.

Sale value (market value of the company, 100% basis)

Original base cost of the shares

What you paid for the shares originally. Often nominal for founders who incorporated their own business.

Shareholding sold to the EOT

An EOT must acquire a controlling interest (more than 50%), but you can model any percentage sold.

Seller's tax band

BADR lifetime allowance remaining (for the trade-sale comparison only)

Used only to model the alternative straight trade-sale route with Business Asset Disposal Relief. BADR cannot be claimed on the EOT's taxable 50%.

CGT payable now on the EOT sale

£455,280

Before 26 Nov 2025 this would have been £0. A further £1,900,000 is held over, latent in the trust.

Total chargeable gain£3,800,000

Chargeable now (50% of the gain)£1,900,000

CGT payable now (current rule, no BADR/IR available)£455,280

Held-over 50% (latent gain, bites the trust's trustees later)£1,900,000

Net proceeds now, current rule£3,544,720

For contrast: CGT under the old, pre-26-Nov-2025 rule (100% relief)£0

For comparison: CGT on a straight trade sale using BADR£851,280

For comparison: net proceeds on a straight trade sale using BADR£3,148,720

Estimate only, not advice. Assumes the disposal otherwise qualifies for EOT relief (controlling interest, trading company, all-employee benefit) and ignores other reliefs, losses or gains in the same tax year.