EOT CGT Comparison Calculator

Use this calculator to compare the capital gains tax (CGT) you could pay when selling your company shares—either to an Employee Ownership Trust (EOT Sale) or through a traditional sale to a third party or management team (Non-EOT Sale). When making the calculations we have assumed:

you have used your CGT annual allowance (CGT allowance) in full
that the base cost of your shares is £nil
all proceeds received in relation to the disposal (Total Gain) are a gain for CGT purposes
for the Non-EOT Sale, that you would qualify for Business Asset Disposal Relief (BADR) and the full £1,000,000 allowance is still available with tax chargeable at 18%

Get your results

Enter your details to receive your CGT comparison and a follow-up from a Birketts adviser.

Full name

Email address

CGT calculation

CGT Payment Considerations

CGT is generally payable by 31 January following the end of the tax year in which the sale takes place.
Consider whether you will have sufficient liquidity to meet the tax liability by this deadline.
Assess how much of the sale proceeds will be received upfront versus deferred.

Where consideration is received over a period exceeding 18 months, it may be possible to apply under section 280 of the Taxation of Chargeable Gains Act 1992 to pay CGT in instalments. This allows vendors to apply to pay the CGT due by instalments, with vendors normally expected to pay instalments of tax equal to 50% of each deferred consideration instalment due under the contract until the total CGT tax liability has been discharged.

To discuss further please contact:

Lisa Hayward Partner, Head of Employee Incentives +44 1473 406316 [email protected]

Laura Gray Senior Associate +44 1473 921703 [email protected]

The results provided by this calculator are for guidance only and this does not constitute tax advice. Tax laws change and individual circumstances vary. Please speak to a qualified adviser before making any decisions.

EOT CGT Comparison Calculator