United Kingdom: Trusts

The United Kingdom and the United Arab Emirates offer starkly different asset protection and business structuring options.

In England and Wales after a person's death their will is open to public inspection. Certain Royal wills, such as those of the late Queen Elizabeth and the Queen Mother, have been sealed (i.e. not made public).

Various trust structures exist within the English legal system to protect beneficiaries who may struggle to manage their financial affairs, and who may be more at risk of financial abuse.

When approaching estate planning, many fail to consider that a Will alone may not be enough to ensure that their wishes are honoured in the long term.

Many people want to help their children or loved ones while they are still alive to see the benefit.

Significant changes were introduced to the UK's tax rules for non-domiciled individuals from 6 April 2025. The remittance basis for non-UK domiciled individuals has been replaced with a residency-based system.

New rules on Employee Ownership Trusts (EOTs) restrict former owners' control post-sale, mandate UK-resident trustees, enforce market-value share sales, and extend the vendor clawback period. These measures strengthen EOT governance and enhance their appeal for business succession.

Employee Ownership Trusts (EOTs) surged by 27% last year in the UK, attracting founders with tax efficiency, legacy preservation, and enhanced employee rewards amid potential capital gains tax changes.

Since the introduction of Employee Ownership Trusts (EOTs) in 2014, the sector has expanded significantly, allowing many companies to transition into employee ownership. This article discusses the complexities and implications of exiting EOT ownership, including tax considerations, the roles of trustees, company directors, and potential buyers, emphasizing that such decisions should prioritize employee interests and be well-informed.