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Written question asked by Ben Obese-Jecty (Conservative) on Monday, 1 December 2025, in the House of Commons. It was due for an answer on Wednesday, 3 December 2025. It was answered by Dan Tomlinson (Labour) on Tuesday, 9 December 2025 on behalf of the Treasury.

Employee Ownership: Capital Gains Tax

Question

To ask the Chancellor of the Exchequer, what assessment has she made of the impact of treating 50% of the gain in disposal to trustees of an Employee Ownership Trust as the disposers' chargeable gain for CGT purposes.

Answer

At Budget 2025, the Chancellor announced that the relief from Capital Gains Tax available on qualifying disposals to Employee Ownership Trusts will be reduced from 100% to 50%. This will retain a strong incentive for employee ownership, whilst ensuring that business owners pay their fair share of tax. The relief remains more generous than alternative reliefs that individuals might use when disposing of their companies, such as Business Asset Disposal Relief.

An assessment of the impacts can be found in the Tax and Information Note for this measure, here: Capital Gains Tax — Employee Ownership Trusts - GOV.UK

Secondary information

Type
Written question
Reference
95822
Session
2024-26
Subjects
Capital gains tax Trusts Employee ownership
Link
View this Written question on www.parliament.uk